FCPO AKAN MENUKAR TREND HARINI Yesterday shows, market price is determined to sell however, price is defending well at bottom dip support
thus, we believe today market will turn to bullish as draw in the chart
carefully trade today cuz there will high volatality today and we expect market will open gap up more than gap down and we make close high today!
FUPO1! trade ideas
SPREAD TRADING STRATEGY ON COMMODITIESThis spells trading opportunity for us as Palm Oil and Soybean Oil are generally considered substitute products, which means, at a large enough price difference, buyers may hop over to buy the cheaper one. Eventually closing the price gap back to its historical mean.
Some potential tailwinds for Crude Palm Oil include;
1) The reopening of China, which would increase the demand for palm oil from the world’s 2nd largest importer of the product.
2) Biofuel Mandates, which would put higher demand pressure on Palm Oil .
3) Slowing production growth in palm oil could lead to supply-demand imbalances, pushing palm oil higher as supply falters.
One way to trade this price divergence would be to short the Soybean Oil – Palm Oil spread. This trade can be set up by selling 1 Soybean Oil Futures and buying 1 USD Malaysian Crude Palm Oil Futures . However, do note that in such a set-up, the position is not fully ‘hedged’ as the contract units are different, 1 Soybean Oil Futures has a contract unit of 60,000 Pounds (~27.21 metric tons) while 1 Crude Palm Oil Futures is for 25 metric tons.
Sources:
https: //www .tradingview.com/u/inspirante/
https: //www .cmegroup.com/trading/agricultural/files/spreading-cbot-soybean-oil-and-bmd-crude-palm-oil.pdf
https: //www .cmegroup.com/education/articles-and-reports/palm-oil-spread-volatility-creates-opportunities.html
https: // jakartaglobe.id/business/palm-oil-prices-production-to-drop-in-2023-gapki
https: // oec.world/en/profile/hs/palm-oil
FCPO Daily downtrendRefer to daily chart, the trend lines still shows it is in bearish downtrend.
MCD does not have red column, no banker chips, only have green color Losechip.
Fortune crown does not have any signal for reversal.
Mirage shows the green column, it is showing money flowing out, bearish market.
Strategy is looking for Short entry in 15min or 1 hour timeframe.
FCPO: CongestionAn update : Expected wave B up has displayed a 5 waves up which warrant a closer look at the following structure as it may kick in other alternative count. Note it resisted at wave 4 of one lesser degree and based on pattern, a possible reverse head shoulder may appear which will support the upside view in the medium term.
FCPO market analysis after GE15Strong support at areas 3790 and 3745...maybe the market will pull back when arrive at the support area...Can try to find buying position if the market makes bullish patterns like double bottom or inverse HnS...The daily bullish structure has broken...can try to find a sell position back after the market has a pullback...