8.45 a.m. - Malaysian Time
The CPO ( crude palm oil ) for October contract open at 2850 and closed at 2890 yesterday. The highest was at 2897 and the lowest was at 2820. It looked like the market was in the stage of reboucing from the last low.
Yesterday, the market ended up a white bar and the indication is that the market should be in the positive position now. Anyway, the market direction would be determined by the opening of the day ( this is the strategy which is being used in this blog ). In long run, the market is still bearish but in the very very short term, the market, I beleive, is now in bullish sentiment. So my forecast for today ;
1) If the market opens between 2855 to 2888. Buy after the market has fallen a bit after opening ( between 9 to 19 points - stop loss of between 10 to 20 points ). Be careful if the market opens and starts to retrace down in a very fast and sharp gradient, it could be a false alarm.
If the market manages to break down the level between 2837 to 2844, the market may retrace further and a black bar may be formed today or at least in the early part of the trading day. This would be more prominent if the market opens more towards the lower part of the ' 2855 to 2888' level. If the market manages to beat up the level between 2897 to 2905, the market may end a white bar today or at least in the early part of the trading day especially if the opening is more towards the upper part of the ' 2855 to 2888' level.
2) If the market opens between 2897 to 2925. Buy after the market has fallen a bit and moved up 3 points above the opening level.
3) If the market opens between 2820 to 2844. Do as in # 2 but in the opposite way
4) If the market opens between 2888 to 2897. Buy after the market has beaten up the level between 2897 to 2904.
5) If the market opens between 2844 to 2855 . Sell after the market has beaten down the level between 2838 to 2844.
6) If the market opens above 2925. It is your call.
7) If the market opens below 2820. It is again your call, I am not sure guys!
8) Look also for a clear pattern of trendlines such as 3 tops etc....
9) Please refer to # 9 ( Thursday's Tips dated 26th June )
10) Also refer to # 9 & # 10 ( Tuesday's Tips dated 1st July )
Besides than the above strategy, there are other strategies that are currently being used to determine the market's direction which are quite hard to reveal here due to some reasons.
That's about it , if you are not sure just consult your broker. On what ever circumtances never to contact your brother-in-law.
Have a nice trading day!!!!