FCPO March Contract Possible Bullish Ahead

Refer to the FCPO (Crude Palm Oil Futures) chart for March contract, FCPO was traded higher and higher since 21/12/2015 with Bollinger Band continued opened wider until the last trading day on 23/12/2015 before the long holidays.

Based on technical point of view, the recent high or resistance of MYR2461, which is the high price did on 29/9/2015 was breached on 22/12/2015 and closed higher @ MYR2468 during the session ended. Following the next trading days on 23/12/2015, although FCPO opened lower @ MYR2457 during the session starts, however with the strong momentum of FCPO the price was pushed upward and again closed higher @ MYR2487 during the session ended.

                                                            FCPO March Contract Daily Chart

Should the bullishness momentum continues, the next target for FCPO to test is the resistance @ MYR2527 or otherwise, profit taking could be seen upon testing this resistance level.

As long as FCPO could withstand and trades above the support level of  MYR2461 in the next trading days, a strong buy or long signal still stay with FCPO for short to medium term.

Due to the strong upward signal for FCPO, one can consider to look for BUY on plantation stocks like FGV and TDM in the coming trading days by closely look on the FCPO price.

                                                                       FGV Daily Chart

Breakout of downtrend line with higher than the average traded volume and Bollinger Band opened wider because of strong CPO price?

Good luck & happy trading!

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