18/12/25 Bulls Need Strong FT Buying for ReversalCrude Palm Oil FuturesMYX:FCPO1!Tech_Trader88Wednesday’s candlestick (Dec. 17) was a bull doji closing in its upper half with a long tail below. In our previous report, we stated that traders would watch to see if the bears could sustain follow-through selling below the November low, or if the market would trade slightly lower but close with long tails or bull bodies in the days ahead instead. The market traded down but reversed to close with a long tail and a small bull body. The bulls hope the selloff (Dec 17) will form a major higher low. The bulls hope to get a reversal from a large wedge pattern (Jan 17, May 8, and Dec 17) and a smaller wedge pattern (Nov 3, Nov 26, and Dec 17). They view the current move as a retest of the November 26 low. They want a reversal from a lower low major trend reversal and a failed breakout below the November 26 low. They need to create strong consecutive bull bars to show they are back in control. The bears want a strong third leg to form the wedge pattern, with the first two legs already in place on November 13 and November 26. They got the third leg down recently (Dec 17). They hope to get a retest of the May low. If the market trades higher, they want it to form a lower high and the 20-day EMA to act as resistance. Fundamentals: • Production: Production down 3% for the first 15 days. • Refineries: Buying interest is there at these low prices. Not paying premiums vs spot futures. Reports of high stock levels. • Exports: ITS first 15 days of Dec: down -15.89% Today (Thursday, Dec. 16), traders will see if the bulls can create a strong follow-through bull bar with sustained follow-through buying. Or will the market trade slightly higher but close with a long tail above and a bear body instead? Andrew