Sunday - 20 April 2008
1.40 p.m. - Malaysian Time
CPO's futures or Crude Palm Oil's futures contract for July open at 3638 and closed at 3553. The highest was at 3659 and lowest was at 3552. Since I did not make any forecast on yesterday's market, so I do not have much to say regarding the matters.
The market , in a very short term, is said to be bearish. The gap between last Monday's bar and last Tuesday's bar had been filled by Friday's bar. Normally , it indicates that the market will continue its downwards or could also possibly be lingering indecisively below the said gap's level.
1) If the market opens above 3562 to 3605 and later falls down beating the level 3546 to 3551, it is forecasted that the market will drop further to a certain level and then may rebound back . Here look for 2 bottoms or , better still, 3 bottoms/ inverted head and shoulder plus ( to be extra sure ) a "lighting or first beating" signs before taking any long here.Remember you are doing day trading here, any profits just let it go.
2) If the market opens between 3623 and above, buy after the market drops to about 12 to 20 points from opening. If , after opening, the markets falls steeply and in a very fast manner, just stay away. The best is, let the market goes up a little after opening and later drops substantially to the intended level before any long can be placed. Do not forget your stop loss.
3) If the market opens between the above ( #1 & #2 ), It is your call
That is it . It is just my analysis!!