22 March 2008 - Tuesday
9.17 a.m. - Malaysian time
CPO futures ( July contract ) for Monday open at 3525 and closed at 3459. The highest was at 3535 and the lowest was at 3435. The market seemed to have continued its southwards movement. This normally occurs after a certain gap within the chart system have been filled either by black or white bar. In this case, the gap between last Monsy's bar and last Tuesday's bar had been filled by Friday's bar ( The Friday's black bar covered the Monday's and Tuesday's bar ).Since the market did not open within my forecasted level, then I would rather reserve my comments. Anyway there was a clear formation of 3 bottoms between 3.00 p.m. to 3.15 p.m.Those who may had taken a long here might probably have been able to make quite a handsome profits because the market kept going upwards until it reached the highest level of the day before retracing down again.
So, let's proceed to today's market where about. As I could figure out on the current market situation, I would prefer to say that the market, in a very short term, is in the situation of uncertainty. So in brief, this is my forecast for today;
1) If the market opens anywhere within the body of yesterday's black bar and later start to move up beating the level between 3536 to 3545, the market may go up further, at least in the early part of the trading day . The market may end a white bar today. It would be more "effective" if the market open more towrds to the higher part of yesterday's bar - if not , just stay away. Anyway, if after opening, the market moves up steeply and in a very fast way beating the level which I have mentioned earlier, just be extra careful, it could a false alarm. If this happens, look for a second attempt.
2) If the market opens anywhere within the body of yesterday's bar and later starts to move down the level between 3427 to 3436 , it may go down further, at least in the early part of the trading day. Either the market may bounce back or continue its downwards journey is hard to say. Any way, as a day trader, if you can make a small profits, just let it go.Anyway, the best is; if the market opens more towards the bottom of yesterday's black bar and then moves to the level that I mentioned - if not, just stay awy from the market today. As I said earlier, if after opening, the market moves down in a very fast and steep way and beat the level that I have mentioned, just be careful, it could be a false alarm. Look for a second attempt. You can also look for trendlines such as 3 bottoms, inverted head & shoulder etc..
3) If the markets opens between 3536 to 3560, look for a buy here. If you make profits, let it go!
4) If the market opens between 3410 to 3434, look for a sell here. If you make profits, let it go!
5) If you refer to above, I did not mention the probable level where the buy/sell position should be placed because I beleive, those who have been following my blog, may prabbably have the idea of how to enter the market as well as how to exit the market
Well, that is it. As usual, I may wrong and I have been ............etc etc etc etc... think I know what you expect me to say.
Hav a nais treding dey