Some sanity is returning to market as panic… | Report

Peace. Some sanity is returning to market as panic sellers after selling the MDEX to sub RM 3750 levels came into buying mode and we saw much expected recovery. As mentioned before if the levels of RM 3750 remains intact for couple of days then the worse in this market is over and correct so we can say the same today. Sept after settling at RM 4135 +80 around lunch is trading at RM 4240 +100 after making a high of RM 4314. These levels are well above RM 4000 but it will find some resistance at RM 4450 levels. Increased consumption in bio fuel , Increased consumption in Food demand and increased spread to Soft oils make palms attractive Oil. Destination like India who are concerned about higher veg oil prices should take advantage of current price as mostly between June and July palm has tendency to make lows. Mostly on the lower side palm should not break the RM 3529 level with strong support also at RM 3785 for Sept month. On the top side with resistance at RM 4450 and 5000 we will suggest our readers to go short in that price range but more importantly one should not panic in correction. In USD palm is offered India Aug 1165 against this local market buyers are looking at INR 930 which is again a disparity.