Saturday, February 12, 2022

CPO .... the Trend and the Channel

The price has been moving within the BLUE channel and in a uniform manner. Outside the blue channel "boundaries" raise the red flag and the the retreat back into the channel seems highly likely. 

Pulling back to test the red lines with the MEDIAN red as the center.

The pundits in the media has been touting CPO going for 6000 level. The Green channel guide the immediate trend and the price has been holding up. The question remains interesting as the lower green and the upper blues seems to be hinting of a "pause"???

With the borders opening and any more of such close borders will not be sustainable economically as this pseudo virus did only to exploit human behavior - FEAR.

If the expat plantation workers return to Malaysia, expect the crop yield to increase sooner rather than later.

The only pressure will  not be flood as this is normally a 2 weeks affair in Malaysia but produce a 2 months impact on the CPO Futures market. 

The only pressure will be international vegetable oil and grain markets that will ultimately affect CPO future prices.

Is this bull tired??? What do the indicators postulating?

     

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