- Indonesia RBD Palm Olein spot prices traded slightly higher during the week, while settled at IDR 15016 with a gain of IDR 173 during the current week.
- Indonesia RBD Palm Olein spot prices are witnessing a ‘corrective dead cat bounce’ post testing ‘50% retracement’ of the previous up-move (IDR 12495 Oct’23 to IDR 17357 Apr’24) in line with the recovery in global edible oil prices, while overall bearish momentum is still intact as prices making lower highs lower lows, thereby prices are unlikely to sustain at higher levels & this recovery may potentially fizzle out in the next few days & subsequently prices would continue to extend its weakness in the upcoming weeks. Therefore, based upon the above observations prices are likely to hold below IDR 15200 & move lower towards the ‘61.80% retracement’ of the previous up-move (IDR 12495 Oct’23 to IDR 17357 Apr’24) placed around IDR 14300 in the upcoming weeks.
- The momentum oscillator RSI (14-period) remained sideways for the week, suggesting bearish momentum is still intact, hence prices are likely to trade ahead on a mixed to negative note in the near term.
- On the upside, immediate resistance is positioned at IDR 15300.
- On the downside, immediate support is positioned at IDR 14500.
- Concisely, prices are likely to hold below IDR 15200 & move lower towards IDR 14300 by 16May-17May’24.