CPO price will be stable at above RM2180 as long as USD is weakening and picking up in exports figures.
The export figures from 1-25 Oct 09 vs 1-25 Sept 09:ITS (+16%) and SGS (+6%).
My notes dated 8-9-2009 on CPO already highlighted that US will adopt a weak currecy policy in order to boost its exports. This scenerio will continue for at least for the next 3 quarter until US government feel its economy is stabalised.
The next indicator to watch out should be US interest rate. A weak currency will continue and will start to strengthen when US increase its interest rate.
Short term startegy:
1. If CPO break above 2240 level, next target should be 2285 before reach 2338.
2. If CPO break below 2200 level, next target will be 2179 >> 2125
Therefore, if CPO price down to 2100 or even lower, it would be safe to LONG for Jan2010 / Feb 2010 contract.
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