Price may have resumed its uptrend though a close above 3900 is required to confirm it. Again, the longer term trend remains up despite the month long consolidation. It is still above its weekly moving average (chart 3). Signals of change of trend yet to surface though we do note that price stayed overbought for a long time, much longer than it did during the last great rally.
Bottom was likely made at 3600 as two white candles was charted right above it and this level should serve as intermediate support going forward. Price look to have resumed its uptrend as:
1) Highest closing price since late Dec high;
2) Daily RSI has broken its downtrend line; and
3) Stochastic is back in buying mode.
But price needs to close above 3900 to confirm the move which should simultaniously confirm the break in RSI. The firmer soybean oil is also positive for CPO, it finally closed above 1.80, and that too was on a Friday. Similarly, the grain complex continue to surge higher. Nonetheless, if price fails to close above 3900 and then 3600 is broken, expect selling pressure to continue.
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