Friday - 27 June 2008
9.17 a.m. - Malaysian Time
The CPO ( crude palm oil ) futures for September's contract open at 3555 and closed at 3535. The highest was at 3570 and the lowest was at 3516.
The market open at 3555 and the movement of the market was not that 'rushing' as in the past few days. If you look at my forecast yesterday ( #4 ) and had you long at , say 3555, you would have been able to make some money if you were to sell, say at about 10 to 15 points from opening level ( see # 9b ). But had you decided to wait for a bigger profits, well, I don't know......
Just to add - If you look at the comment section on my posting yesterday, the 'casino-like' strategy seemed quite okay at this point of time ( in the future ? ). The morning bar was a black one and in the afternoon, after the market open and beat down the lowest of the morning's bar, it kept moving down until it reached the lowest of the day ( 3516 ) and it started to go up again. Had a long position been placed after seeing the market moved up 10 points from the 3516 level, you probably would have been able to make quite a beautiful ( instead of handsome ) profits. There was also no clear pattern of any trendlines.
Yesterday the market did not end a white bar , though I did not expect that to happen , I think the market is now in the sidelines phase. In this situation, the strategy which should be used should be the contrarian strategy which means, sell where you are supposed to buy and vise versa. Some say short at resistance and long at support level. The market is expected to have its direction again if the level 3575 and 3490 are broken. So, no forecasting today.
Have a nice trading day and smile always.