Tuesday - 22 July 2008
12.30 a.m. - Malaysian Time
The CPO ( crude palm oil ) for October's contract open at 3320 and closed at 3260 yesterday. The highest was at 3335 and the lowest was at 3197.
The market open not within the forecasted analysis as put forward yesterday, so theoritically, there was no money made yesterday. Anyway, if you look at the trendlines, there was quite a clear pattern of 3 bottoms which occured at about 12.00 noon. Those who are not familiar with 2 or 3 bottoms are advised not to use this method as it may add to confusion at times.
In a very short term, the market is still in bearish position. Anyway the direction of the market today may depend on the opening point ;
1) If the market opens between 3236 to 3274. Sell after the market has moved up between 9 to 20 points after opening of the market. Be careful if the market manages to beat up the level between 3284 to 3290, the market may go further up and a white bar may be formed today or at least in the early part of the trading day. This may be prominent if the opening is nearer to the upper end of the 3236 to 3274 level.Also careful, if the market, after opening, starts to move up in a very fast and in steep gradient and if this happens the market may continue to go up further or it could also be a false alarm.
If the market manages to break down the level between 3218 to 3226, the market may go further down but may rebounce back . If you make enough profits here, just lock them up! This will be more prominent if the market opens more nearer to the lower end of the 3236 to 3274 level.
2) If the market opens between 3274 to 3284. Buy after the market has passed the level between 3284 to 3290. If these levels are broken the market may go up further and a white bar may be formed today or at least in the early part of the trading day.
3) If the market opens between 3226 to 3236. Sell after the market has passed down the level between 3218 to 3226. The market may fall further down but it may rebounce back.
4) If the market opens between 3284 to 3310. Buy here - to be safe, let the market falls a bit and buy after the market has moved up and beat 3 points above the opening point.
5) If the market opens between 3200 to 3226. Sell after the market has moved up a bit and then falls passing 3 points the opening level. If the market opens and moves up in a fast way, the market may go further up.
6) If the market open above 3310. It is your call. If the market moves up and beats the level between 3336 to 3343, the market may move further up and a white bar may be formed today.
7) If the market opens below 3200. It is your call. I don't know man but I think the market may ends a white bar.
8) If the market opens at any point and manages to beat the level between 3336 to 3343, the market may go further up especially if the market opens nearer to this level.
9) You can also look for a very clear pattern of trendlines to place your position
10) Please refer to #9 ( Thursday's Tips dated 26th June )
11) Also refer to #9 and #10 ( Tuesday's Tips dated 1st July )
That's about it, I may be wrong.....blah..blah...If you are not sure, do contact your broker but never contact your land lord ( if you have one ). He/she may like to raise the rent of your house
Have a nice trading day!!!!