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Crude Palm Oil (CPO) - Broke Its Multi-Month 'Reversed HS'!!!

By: William Yii | Thursday, January 31, 2013

See Jan 16th's post: (http://tinyurl.com/b7sg2lm), I mentioned the bottoming crude palm oil price on its "monthly H&S broken-down pattern" while its weekly chart was showing a highly probable "reversed H&S pattern" set-up since the H&S target was met.

  1. The weekly price chart just broken-out of its "reversed H&S" pattern decisively.
  2. The price action of late is certainly pointing to more upsides in the Crude Oil itself as Palm oil typically track and rally along with Crude oil prices.
  3. 1st implication: although a rallying CPO prices is positive for the upstream producers, it also mean that inflationary pressure is once again looming and would not bode well for equities in general
  4. 2nd implication: a rallying commodity prices is very likely confirming equities' top since commodities typically lag equities' rally. Therefore, a final rally in commodities means equities are already in the process of topping!
  5. Lastly, given that global demand & supply outlook for CPO has not actually improved do drastically in the interim is implying that the bullish breakout in its prices could be led by speculative traders in the futures' market.


CPO (Monthly)

CPO Monthly Chart


CPO (weekly)

CPO Weekly Chart

 

Author: William Yii

William Yii
AlphaOmegaHedge

William Yii

Alphaomegahedge is a financial blog that attempts to use the powerful tools of technical analysis plus the big picture of some important fundamental views in identifying major & intermediate trends of risky assets. My main focus are precious metals & miners, U.S major indices & Malaysia Equities.

Author is an equities fund manger who is currently based in Malaysia.

Rightly or wrongly, the views expressed on this blog are of author's personal opinion and shall neither serve as investment advice nor recommendation under any circumstances. All views are meant for educational purposes only.

Copyright © 2013 William Yii