Monday - 19th May 2008
1.20p.m. - Malaysian Time
Tuesday ( 20 May 2008 ) - 8.30 a.m. - a little bit of updating
The CPO market for August's contract open at 3500 and closed at 3570 on last Friday. An up of 70 points. The highest was at 3570 and the lowest was at 3500. For information, the market is closed today as today is a Wesak Day in Malaysia. The market will resume its activity tomorrow.
In a very short term, the market is said to be bullish. For the past two days, the market ended a white bar on each day.
1) If the market opens between the level 3520 to 3560 - Buy after the market has fallen to about 10 to 17 points after opening. Be careful if the market opens and falls in a very fast way, it could be a false alarm .If this happens,the market may retrace further down.Do not forget your stop loss. I f you are not sure, look for 3 bottoms, inverted head and shoulder or other trendlines before long. If the market beats the level between 3571 to 3578, the market may go further up. A buy postion can be placed here especially if the market opens more towards to the level of 3560.( more towards the upper end of the level between 3520 to 3560 ).
If the market opens and later beats down the level between 3497 to 3508, the market may retrace further especially if the level 3485 is broken and it may end up a black bar at the end of the day or at least in the early part of the day. A sell position can be placed here. This would be more prominent if the market opens towards the lower end of the level between 3520 to 3560 ( or you could place a sell after market opens and moves up 10 to 17 points from opening ).
2) If the market opens between the level 3560 to 3570, buy after the market beats the level between 3571 to 3577 or after the market has fallen 10 to 17 points from opening point.. Do not forget your stop loss etc.....
3) If the market opens between the level 3509 to 3520, sell after the market opens and beats down the level between 3495 to 3508 or 10 to 17 points after the market has moved up from the opening point. Do not forget your stop loss etc....
4) If the market opens between the level 3571 to 3595, buy after the market opens and drops a few points ( preferabably more than 5 points ) and later beats the opening point of , at least, 3 points . If , after the market opens, the market falls , buy after 10 to 17 points from opening.Do not forget your stop loss or if not sure, you can also look for trendlines before long.
5) If the market opens between the level 3483 to 3508. Do as above but in an opposite way.
6) If the market opens not within the above, it is your call.
Well, that's about it. As indicated earlier, the methodology of tradings suggested in this blog are in generalities, there are other strategies which I use that give a better winning outcomes.
Have a nice trading day....