Monday - 21 July 2008
9.15 a.m. - Malaysian Time
10.00 a.m. - a little bit of updating
10.10 a.m. - Another updating, to correct wrong figures
The CPO ( crude palm oil ) for October's contract open at 3397 and closed at 3392 on last Friday. The highest was at 3405 and the lowest was at 3358. It was a black bar and in a form of a hammer ( according to Japanese candle stick ). So no comment on that.
Last Friday, the market ended with a black bar and a hammer candle was formed. According to Japanese candle stick, it indicates that the market is in the reversal pattern. In Japanese candle stick, there are 3 types of candles which are of interest to most of the day traders which are beleived to be able to give about 75% accuracy. These are the Hammer or Hangging Man, Engulfing Bar, Dark Cloud Cover or Piercing Bar. Anyway, the realism of the reversal pattern would also depend on the opening of the market on the next session. Here are my forecast for today;
1) If the market opens between 3363 to 3393. Buy after the market has moved up and beat the level between 3393 to 3399. The market may move further up if the level between 3405 to 3410 are broken and a white bar may be formed today or at least in the early part of the trading day.
If the market moves down and beats the level between 3350 to 3358, sell here as the market may go further down but it may be short lived, the market may rebounce back. If you manage to make enough profits, lock it up quickly!
2) If the market opens between 3394 to 3406. Wait the market to fall a bit and buy after the market has moved up beating the 3 points above the opening point or if after opening, the market do not retrace not even a bit, buy after the market has beaten the level between 3405 to 3410. See also #1 ( the bold letters ).
3) If the market opens between 3405 to 3430. Buy here - for safety purposes, wait the market to fall a bit and buy after the market has moved up again and beat the opening point.
4) If the market opens above 3430. It is your call. I don't know, really.
5) If the market opens below 3350.It is your call, I don't know , really.
6) If you are not sure, you can look for a clear pattern of trendlines such as 3 tops/ bottoms etc
7) Please refer to # 9 ( Thursday's Tips dated 26th June )
8) Also refer to # 9 and # 10 ( Tuesday's Tips dated 1st July )
Well, tha's it. If not sure , do contact your broker but never to contact your .......blah,blah
Enjoy your trading !!!