Commodity prices fell last week due to growing concerns in eurozone debt crisis which curbed demands in global consumption. WTI Crude fell in New York based on speculation that the reversal of the Seaway pipeline would be insufficient to eliminate a glut in the US Midwest.
Gold prices slid as both US and UK voiced concerns of a contagion spread from the euro debt crisis affecting their growth.
WTI Crude oil fell off last week’s high of 103.40 and closed below 100 benchmarks on Friday. We reckon the market will begin to drop in the coming week with this same benchmark acting as a strong resistance.
We also expect the trend to reach 95 levels before buying interest emerges. Beware of sideways swings after that as the market will be prepared to make consolidation patterns for a short while.
Gold prices had a hard fall from 1,795.10 to 1,710.10 last week. This week, we forecast the trend to consolidate higher to 1,740 regions in early week before another down trend to follow through. Crude Palm Oil (CPO) Futures on Bursa Derivatives closed higher last Friday and ended at a near five-month high due to strong buying interest from overseas market and tight supply.
FCPO December and January contracts closed at RM3,260 while the most active month, February, closed at RM3,248. This week, we expect strong supports will emerge at S1 – 3,140 regions and S2 – 3,060 regions.
Topside strong resistance will remain at 3,300 levels, unless breaking above here will possibly reach 3,450 as December targets.
Disclaimer: This report is written for general information only. No liability by the writers, publisher or any third party involved in the distribution of this work. Dar Wong and Chong HC are the market strategists in APSRI on CPO markets. DAR has 22 years of trading and hedging experiences while HC trades for four years and now coaches institutional customers. They can be reached at www.traderpromaster.com.