Wednesday - 18 June 2008
8.50 a.m. - Malaysia Time Zone
The CPO's ( Crude Palm Oil ) contract for September open at 3675 and closed at 3645 yesterday. The highest was at 3694 and the lowest was at 3639. Since I did not make any forecasting on yesterday's market, so I reserve any comment.
So how about today ? I would rather prefer to say that the market, in a very very short term, is bearish. Anyway, as the strategy used in this market depends on the opening of the day, the forecast for the market direction today would be as follows;
1) If the market opens between the level 3650 to 3682. Sell after the market has moved up a "little bit" (between 9 to 21 points) from opening level. If the market beats up the level between 3695 to 3702, the market may go up further, at least in the half of the trading day. This would be more prominent if the market opens more towards the upper part of the level between 3650 to 3682. If the market , after opening, beats down the level between 3627 to 3635, the market may retrace further down but there is a posiblity that the market may rebounce back. This would be more prominent if the market opens more towards the lower part of the said level as above ( nearing the 3650 level )
2) If the market opens between the level 3682 to 3694. Buy after the market has beaten up the level 3695 to 3635.
3) If the market opens between the level 3639 to 3650. Sell after the market has passed down the level between 3626 to 3635.
4) If the market opens between the level between 3695 to 3720. Buy after the market has retraced down a bit and later beats up 3 points above the opening level. If the market does not fall after opening, buy at your will ( experience in trading is important here )
5) If the market opens between the level 3615 to 3639. Do as #4 but in the opposite way.
6) If the market opens between 3720 to 3730 and above. I am speechless, it is your call.
7) If the market opens between 3605 to 3614 and below. I do not know, it is your call but I think the market may end up a white bar today
8) Make sure to put your stop loss between 10 to 20 points should the market goes aginst you ( you better start praying too ). If the market opens and immediately moves up or down in a very fast and steep gradient, be careful it could be a false alarm, you can try on the second attempt ( this does not apply for #4 and #5 as above ).You could also look for trendlines such as head and shoulder etc... before placing your position.
Well, that's about it, as usual, this is my forecast, I may be right or wrong. I have been rights for so many times and I have wrongs also for many times. There are also other strategies which could give a better winning outcomes besides than the above strategy which cannot be revealed at this point of time due to some technical constrain
If you are not sure.....contact your broker but never your wife. If you loss, she will start nagging non-stop, contact her only when you make profits..........women.......
Have a nice trading day