9.00 a.m. - Malaysian Time
The Crude Palm Oil ( CPO ) for March's contract open at 1550 and closed at 1545 yesterday. The highest was at 1570 and the lowest was at 1545. It was a black bar with 41 points movement.
The movement of the market, after opening, was on the position of uncertainty. There was no clear direction even though the market open lower than the lowest of the day before. Will the market be following north or may be south today?
The market is still in the bearish situation but on the very very short term, I would foresee the market is bullish. My forecast for today are as follows;
1) If the market opens between 1540 to 1570. Buy after the market has dropped about 5 to 9 points after opening and make sure that these 5 to 9 points dropping do not beat the levels between 1535 to 1540. If the market manages to beat down these levels, the market may fall further. The market is expected to make another fall if the levels between 1524 to 1529 are broken down. On the other hand , if the market beats the levels between 1570 to 1577, the market may move further up especially if the market opens more towards the upper end of the 1540 to 1570 levels. Any profits, just lock them up. Do not forget your stop loss and false alarm.
2) If the market opens between 1571 to 1595. Buy after the market has dropped a bit and then moves up 5 points above the opening level.
3) If the market opens between 1515 to 1540. Sell after the market has moved up a bit and later fall down passing 5 points below the opening level.
4) If the market opens other than the above, it is your call...or may be you better forget it and go to sleep!!!!
5) Trendlines? Ok if you know how to...
6) Please refer to # 9 ( Thusday's Tips dated 26th June)
7) Also refer to #9 and # 10 ( Tuesday's Tips dated 1st July )
Well, that's about it. Just cross the figures this time!
Enjoy your trading day even if you are not smiling.