Palm oil stocks have been sold down for the whole of last week. This drop coincides with the drop in crude oil prices.
Looking at the chart of IOI Corp, we can see that the trend is clearly downwards. The ADX is approaching the 40 level and the –DI is higher than +DI by a considerable amount. This indicates a potential for a strong down market.
The MACD is also painting a negative picture with the indicator below its signal line.
The stock is clearly oversold going by the RSI indicator. However, oversold market doesn’t mean the stock will rebound and going by the negative sentiment so far, any rebound should be seen as an opportunity to get out of this stock.
Looking at the chart of IOI Corp, we can see that the trend is clearly downwards. The ADX is approaching the 40 level and the –DI is higher than +DI by a considerable amount. This indicates a potential for a strong down market.
The MACD is also painting a negative picture with the indicator below its signal line.
The stock is clearly oversold going by the RSI indicator. However, oversold market doesn’t mean the stock will rebound and going by the negative sentiment so far, any rebound should be seen as an opportunity to get out of this stock.
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