Palm oil is now at a fibonacci confluence zone. There is another confluence zone just a bit below should palm oil continues to decline.
As important, the confluence is being met with important signal in both indicators: RSI is touching MA crossover (very significant), and at the same time, composite index indicator with its shorter MA.
This crossover touchdown is often followed by a sharp move to the upside.
If this is FX trading, this is the place where I bet long. Put my stop loss below the second confluence zone and set my target at prior high at the minimum.
Suppose that this signal leads to a higher high, chart below shows a fibo ret projection. There is a likely significant resistance just above prior high.
We could do more. The diagonal line shown is a significant angle for CPO. Read previous article to get a better idea on this technique.
An aggressive projection shows the diagonal and horizontal line would meet around six months from now. That is my estimation on how soon CPO will reach that higher high resistance. It is possible if the signal in indicator leads to what it usually does.
See previous analysis. The sharp upswing in 2019 was identified pretty much here and there. Spot on. And here we are again. The same setup.
Read also: Indonesian Palm Oil Companies In 6 Charts
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