Palm oil stocks slump

FIRST RESOURCES ($1.825) – Set for correction
- Technical indicates that prices are in a corrective phase
- Prices look set to correct downwards
- 50 day moving average provides support with better support at $1.65

GOLDEN AGRI RESOURCES (71.5 cents) – Outperformance over
- Technical picture is weak
- Prices may well fall below 69 cents moving down towards 63 cents
- Resistance is at 75 cents

INDOFOOD AGRI RESOURCES ($1.575) – Downturn
- Prices are set to fall
- Confluence of 200 day and 50 day moving averages should halt decline
- Technical confirms the corrective phase ahead
- Rebounds are likely to be limited to $1.62

KENCANA AGRI REOURCES (35 cents) – Falls to support
- Prices are now testing the confluence of 50 day and 100 day moving averages
- Prices may also move below 34 cents. In this event, support is at 31 cents
- Upside is likely to be limited to 36.5 to 37 cents

OLAM INTERNATIONAL ($2.30) – Weaker than sector
- Technical picture is weaker than sector
- Any rebound is likely to be temporary
- Rebounds will find resistance at $2.34

WILMAR INTERNATIONAL ($4.90) – Downtrend in force
- Prices are testing their December lows at $4.90 level
- Technical points to signs of a strong downtrend
- Temporary rebound could occur in next session of two.
- Resistance is at $5.10

(Source: TheEdgeSingapore March 12, 2012)