Can Palm Oil Prices Hold at 4000?

2021年12月19日Palm oil prices slumped and closed at 4408. Last week palm oil prices broken support level at 4700 and touched on weekly low at 4245.

There were several factors we can look into:
1. Market plunged about 4.5% on Wed after cargo surveyor reported larger than expected drop in export
2. Price movement in global vegetable oils market also affected palm oil prices
3. Stronger crude oil prices has make palm oil prices more attractive
4. Tightening production due to labor shortage continue serve support to palm oil prices
5. Stronger dollar and weakening Ringgit Malaysia also helps in palm oil prices
Technical view:
1. Long Black bar formed which indicates bearish signs
2. support level at 4500 broken, market further test support level at 4200
3. Stochastic level= remain bearish sign

Suggestion Trade:
maintain bearish view for FCPO next week with immediate resistance level at 4545
Initial Short if market below 4545
Stop Loss (Resistance level) 4845
Target Profit (Support level)
TP1 4200 TP2 4025 TP 3875