- Indonesia RBD Palm Olein spot prices traded on a negative note and currently hovering near IDR 11904.74.
- Prices have formed a bearish engulfing pattern and breached below the rising trend line turning the underlying momentum to negative.
- The momentum indicator RSI (14Pd) is seen turning lower from overbought region suggesting a correction in coming weeks.
- Hence, prices are likely to hold below IDR 12700 on further extension of gains and trade lower towards IDR 11000 in the coming weeks.
- On the upside, immediate resistance zone is positioned at IDR 12700 followed by IDR 13400 which happens to be 261.8% Fibonacci extension swing of IDR 7182 to IDR 9684.
- On the downside, immediate support is positioned at IDR 11800 followed by IDR 11000.
- Concisely, prices are likely to hold below IDR 12700 on further extension of gains and trade lower towards IDR 11000 in the coming 3 to 4 weeks.