Crude Palm Oil (FCPO): 31 August 2013, Saturday, 10.10pm Singapore Time
Crude Palm Oil (FCPO)
Attached is the Technical Analysis of Crude Palm Oil (FCPO).
Crude Palm Oil (FCPO) has formed a solid mid-long term Longs/Buy Technical Accumulation and is currently executing a violent shake-out phase. Short-mid term movement of FCPO will be very bullish.
Judgement from Technicals is that FCPO is unlikely to be a false break-up as it would coincide with USD short-mid term correctional movements. Once the current backtest at 2360-2410 completes, FCPO will rocket strongly up towards the 3000 RM point for the ultimate bearish reversal.
Movement from current point of 2410 RM towards the 3000 RM represents a potential profit of +24.5% without leverage, and a profit potential of +245.0% with a 10x leverage.
Judgement from Technicals is that FCPO is unlikely to be a false break-up as it would coincide with USD short-mid term correctional movements. Once the current backtest at 2360-2410 completes, FCPO will rocket strongly up towards the 3000 RM point for the ultimate bearish reversal.
Movement from current point of 2410 RM towards the 3000 RM represents a potential profit of +24.5% without leverage, and a profit potential of +245.0% with a 10x leverage.
Based on Technical Structure,
Long: $2410 (First Batch of Buys); $2390 (2nd Batch of Buys); $2360-2370 (Final Batch of Buys)
Target 1: $2750 (First Resistance), representing at least +340RM profit per contract longed.
Target 2: $3000 (Guaranteed Price Satisfaction), representing +590RM profit per contract longed.
This Technical Rebound is targeted to wipe out late shortists who do not have holding power to their shorts.
Take longs/buys/investment profits on FCPO/Crude Palm Oil/Crude Palm Oil Stocks when the above targets are hit.
Take longs/buys/investment profits on FCPO/Crude Palm Oil/Crude Palm Oil Stocks when the above targets are hit.
Stocks expected to be bullish during this FCPO Technical Rebound:
Palm Oil Stocks such as
Wilmar, Golden Agri, Kencana Agri, First Resources
Note that this movement up is a short-mid term dead cat bounce within a long term downtrend/downwave.
Side-Note:
Current Movement in this sector of commodities is consistent with my FFA Worldwide that Big Hands took all shorts profits on the international financial markets off the table already. Worldwide markets not bearish already. Also consistent with my stand that Gold will hit 1500-1550 for reversal back down.
Donovan's Market Analysis: