Friday - 13 June 2008
9.00 a.m. - Malaysian Time
The CPO futures market for August's contract open at 3682 and closed at 3623 yesterday. The highest was at 3691 and the lowest was at 3620.
So how about today's direction? In a very short term, I could figure out that the market is bearish. As usual, the strategy is determined by the opening of the market as the opening is beleived to have indicated the performance of other commodities such as soybean oil, crude oil etc..In short ( not in details this time ), here are my forecast for today;
1) If the market opens between the level 3630 to 3655. Sell after the market has risen " a bit " after opening. If the market beats up the level between 3666 to 3673, the market may move further up and a white bar may be formed today or at least the market would go up ( enough to make some profits ) before retracing down. Later, if the market beats the level between 3686 to 3692, the market may go further up and a white may be formed today.More prominent if the market opens more towards to the upper end of the said level ( nearing the 3655 level ). If the market beats down the level between 3613 to 3620, the market may retrace further down. More prominent if the market opens more towards to the lower part of the level 3630.
2) If the market opens between the points 3620 to 3630. Sell after the market has beaten down the level between 3613 to 3620.
3) If the market opens between the level 3656 to 3666. Buy after the market has beaten the level between 3666 to 3673.
4) If the market opens between the level 3594 to 3620. Sell afterr the market has moved up a little bit from the opening.
5) If the market opens between the level 3666 to 3691. Buy after the market has retraced a bit from opening.If the market moves and beats the level 3691 to 3697, the market may go up further and a white bar may be formed today.
6) If the market opens above 3691 to 3715, the market may go further up.
7) If the market opens above 3715, it is your call. I think the market would be a black bar today or at least before lunch.
8) If the market opens below 3594, it is your call. I think it would end a white bar today at least before lunch.
9) If the market opens and moves up / down in a fast way and in a steep gradient, be careful it could be a false alarm, look for a second attempt. Another false alarm if the market moves up / down without retracing / moving up first, if you see this just stay away from the market, look for trendlines.Do not forget the stop loss etc.. If not very sure of the next movemet, lock up your profits immediately.You could also look for trendlines before taking your position such head and shoulder, 3 tops etc.. ( I seem to like these trendlines more than others )
If not sure, contact your commodity broker / dealer ...........never to contact your grandmother....Well, they seem not to bother on anything anymore.
Have a nice trading moment.