- Indonesia RBD Palm Olein spot prices traded higher & closed at IDR 16041 in its prior week, while currently settled at IDR 16362 with a gain of IDR 321 during the current week.
- Indonesia RBD Palm Olein spot prices continued to trade in an ‘upward consolidation’ since last couple of months, suggesting the underlying trend (down) is still intact as prices are moving in a ‘rising channel’. Further, prices tested (61.80% retracement) placed around IDR 16300 level & exhibiting upside momentum is fading at higher levels, hence needs to be watched with caution as it may trigger selling pressure emerges from higher levels. Further, sentiments has turned bearish in global edible oil prices in recent past couple of days, thereby likely to have a negative impact on the Palm Olein prices in the near term. Further, prices facing rejection from higher levels & lack of follow through is an indication that ‘upward momentum’ is losing, hence needs to tread with caution in the near term as any break below the ‘rising support trendline’ would trigger sharp fall in the prices. Therefore, based upon the above analysis prices are likely to hold below IDR 16500 & move lower towards IDR 15600 & below in the coming couple of weeks.
- The momentum oscillator RSI (14-period) inched higher during the current week, overall prices are likely to trade ahead on a mixed to negative note in the upcoming week.
- On the upside, immediate resistance is positioned at IDR 16700.
- On the downside, immediate support is positioned at IDR 15700.
- Concisely, prices are likely to hold below IDR 16500 & move lower towards IDR 15600 & below in the coming couple of weeks.