23/2/26 Trading Range, Buy Low, Sell HighCrude Palm Oil FuturesMYX:FCPO1!Tech_Trader88Friday’s candlestick (Feb. 20) was a bear bar closing in its lower half with a long tail above. Bulls view the current move as a bearish leg and a sell vacuum test of the prior support level, the January low. They need to create strong consecutive bull bars trading above the 20-day EMA to show they are back in control. Bears got a reversal from a double top bear flag (November 19). They created consecutive strong bear bars below the 20-day EMA in a tight bear channel, indicating persistent selling. Bears want the 20-day EMA to act as resistance, followed by a second leg sideways to down to retest the current leg low (February 13). Fundamentals: • Production: Production for Feb - 10 days SPPOMA: -7.58% • Refineries: Not paying premiums vs spot futures - yet. • Exports: ITS Feb first 20 days down -9% The market formed a strong leg up, followed by a strong leg down. This indicates a trading range activity pattern - buy vacuum up to test resistance, and sell vacuum down to test support. In a trading range, traders will Buy Low, and Sell high - buying near the lower third of the trading range and selling near the upper third of the trading range. For now, (Monday, February 23), traders will watch if the prior support level in January will act as support and form a major higher low, and the market reverses above the 20-day EMA. Or will bears be able to create more follow-through selling to retest the February 13 low instead? Andrew