Thursday - 26 June 2008
9.50 a.m. - Malaysian Time
The CPO ( crude palm oil ) for September's contract open at 3502 and closed at 3538 yesterday. The highest was at 3554 and the lowest was at 3490. No comment on that.
In brief, the market in a very short term is bullish, the forecast is as follows;
1) If the market opens between 3520 to 3534. Buy after the market has fallen about 5 to 10 points from the opening. If the market moves up beating the level between 3545 to 3553, the market may go up further but if the market ends up a black bar today, the market may be in the sidelines phase.If the market falls beating the level between 3503 to 3510, the market may fall down further especially if it beats down the level between 3483 to 3490.
2) If the market opens between the level 3534 to 3544. Buy after the market has moved up and beat the level between 3544 to 3551, the market may move further up.
3) If the market open between 3510 to 3520. Sell after the market has passed down the level between 3502 to 3510, see also the bold letter #1 as the above.
4) If the market opens between 3544 to 3570. Buy after the market has fallen about 5 to 10 points after opening or if the market falls a bit after opening, buy after the market has moved up nd beats 3 points above the opening level.
5) If the market opens between 3485 to 3410. See the bold letters at #4 above but do it the opposite way. See also the bold letters as in # 1 above.
6) If the market opens above 3570. It is your call, I have no idea , man
7) If the market opens below 3485. It is your call, well, see the bold letters as at #6
8) You can also look for a very clear pattern of trendlines such as 3 tops/botoms etc...before placing your position.
9) a) Don't forget your stop loss
b) Lock up your profits as you see one, the market may go against you sooner or later
c) If the market opens and moves up / down in a very fast and in steep gradient and in a "big distance" from the opening, be careful the market may proceed further up/down. If the distance from the opening is not "that big", it could a false alarm, you can try on the second attempt.
d) For the best result, after opening the market moves up / down a bit and then move down / up passing the opening point to the intended forecasted level, see bold at #c as above for continuation
d) The strategy above applies only after opening hour, it may not be suitable later than that
Well, this is only my forecast, I have been wrongs and rights for so many times. If you are not sure, contact your broker ( sometimes or most of the times your broker is ....yak....#@$%&* ) but never contact you librarian......wait a minute, I think it sounds familiar.......... I have heard that before...oh ya, I was once a librarian .....
Have a nice trading day and have fun even if you lose some money!!!