Crude Palm Oil Futures Outlook for 4 May 2018
FCPO 4H Chart week ending 4 May 2018 - No signs of Solid Bulls yet
If you follow our analysis since last month, and our warning of “don’t let April Fools you”, FCPO continues to go lower from the peak of ~2505 level, which coincides with the apex of the triangle. (Refer our earlier posting here)
At that time some analysts are preaching FCPO has seen its bottom.
We will try to move the time frame to 4H this time around. A quick recap on what happened on Friday,
FCPO rebounded from 2329 level due to stockpiles in April 2018 seen to be lower.
Nonetheless, based on 4H chart, FCPO still shows signs of weakness.
First of all, FCPO price is still below Kumo cloud, Tenkan-sen and Kijun-sen.
RSI however shows a renewed Bullish momentum from its oversold zone and immediate resistance can be seen at 2364 level denoted by the solid dark green line. This are will keep the selling pressure going for FCPO.
Based on our Elliott Wave count which has been simplified for our reader, it is still showing wave iii down still in place.
As usual, Elliott Wave is the study of the overall market behaviour and psychology, if the 2430 level is broken, we have to recalculate our count.
For the benefit of our reader, the table summarised my findings on average FCPO behaviour by month since 1995 (although this info may be useful for researcher/ fundamentalist and not us as a hardcore trader)
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