Sunday - 22 June 2008
4.25 p.m. - Malaysian Time
The CPO market for September's contract open at 3545 and closed at 3551. The highest was at 3557 and lowest was at 3525.
If you refer to one of my forecast on last Friday ( see # 7), the market open at 3545 ( open below 3555 ) and ended up a white bar but up to this moment I still am looking for a mechanism on how to enter the market if the market opens way too high or too low from the previous day's highest / lowest.
There was a not -very clear pattern of 2 bottoms ( you must know how to recognise between the 2 and 3 bottoms ) which the 2nd bottom occurred after 4.45 p.m. Since the 2nd bottom happened at this hour, so it is not adviseable to long here.
The way I look at it, in a very short term, I would say the market is still bearish. In brief, here is my forecast for Monday's market ;
1) If the market opens between the level 3535 to 3545. Sell if the market moves up a bit ( I think those who have been following me may have the idea of how to go about it ). Careful if the market opens and starts to move up quickly and in a steep gradient, if this happens the market may go up further especially if it beats up the level between 3555 to 3563. If this happens a white bar may be formed at the end of the day. If the market opens and later beats down the level between 3514 to 3525, the market may fall further but may rebounce back.
2)If the market opens between the level 3545 to 3555 . Buy after the markets has beaten the level between 3555 to 3563.
3) If the market opens between the level 3525 to 3535. Sell after the market has beaten down the level between 3516 to 3525.
4)If the market opens between the level 3555 to 3581. Buy after the market has fallen a bit after opening or if the fall is so small, buy after 3 points above the opening level.
5)If the market opens above 3581. It is your call. I don't know what to say, man.
6)If the market opens between 3498 to 3525.It is your call and I am speecless but I think the market will end a white bar if the market opens and starts to move up without retracing back passing down the opening point.
7)You can also look for trendlines such as 3 tops ..etc. Don't forget your stop loss ...blah...blah
Well, good luck....and have a nice trading day!