Crude prices have been affected by countering forces between contracting demands from European’s recession and Iranian tension. Last week, the WTI Crude floated above US$100/barrel while gold prices recovered above US$1,600/oz. The meltdown in the eurozone economy and subsequent downgrade in Hungary triggered investors to return into buying gold as safe haven.
This week, we reckon the WTI Crude will hover in 100 regions while making consolidation. No clear direction is expected yet but the ongoing trade embargo on Iranian exports will continue to lead the subsequent market trend. We predict some sideways will occur from 98.00 – 104.00 levels but prone to technical weakness. Abandon your short view if the market penetrates above 104 benchmark.
Gold prices have been favoured by investors but technical digestion will be expected in coming week. We predict the trend will move sideways with support resting at 1,595 regions while topside may try marginal high at 1,640. From technical outlook, we prefer to pick short from higher prices whenever the market pulls up in quick retracement.
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed at 3,211 for March delivery contract. The sentiment declined on weekly basis though there were some short-covering seen on Friday. Strong resistance emerged at 3,244 regions while negative news covered the eurozone might possibly move into recession with reducing the demands for food and energies. This week, we expect the CPO prices to remain flat but bias to weakness at 3,110 levels if selling forces drive beneath 3,170. Abandon your short view if the market penetrates above 3,250 benchmarks.