Golden Agriculture: A tale of two crudes

I was watching Bloomberg on TV while vacationing and some technical analyst said that US$80 for crude oil is in the bag and would happen before the week ends. There is also news out of Venezuela that Chavez might have to do something drastic to handle a crisis in the country and that might send crude oil up to US$100! That would make Darryl Guppy happy.

Crude oil moved to the lowest in 2010 on Tuesday, 19 Jan, while crude palm oil trades at the lowest level in 8 weeks today at RM2,444, down RM46 or 1.85%. Short term weakness providing a chance to accumulate? Maybe.

Technically, the 50% Fibo line at 56.5c seems to be providing near term support. If this counter is also doing a correction using time, it would be waiting for the 20dMA to catch up and the 20dMA would be at the 50% Fibo line sometime in the next couple of sessions. The 20dMA also coincides with an uptrend line and this reinforces the near term support.

If the 20dMA support gives way, Golden Agriculture should find support at 54.5c, the 38.2% Fibo line and at 54c which is a gap support.