Wednesday - 2 July 2008
9.35 a.m. - Malaysian Time
The CPO ( crude palm oil ) futures for September contract open at 3624 and closed at 3575 yesterday. The highest was at 3624 and the lowest was at 3560.
Yesterday the market open at 3524 but it did not go up beating the level 3630 to 3637. So theoritically, there was no money made and also no money 'lost' yesterday. In fact, after opening, the market fell in a sharp gradient about 40 points from the opening point. In normal circumtances, if this happens the market would normally do not up again to pass the opening point, at least in the early part of the trading day. The market also did pass down the level between 3572 to 3580 ( see # 1 ) and it also did go down further but moved up again after touching 3560 ( about 20 points from the level 3572 to 3580 ). But because the opening of the market was quite high , so it was not adviseable to sell at this level ( at 3572 to 2580 ). There was quite clear pattern of trendlines ( 2 bottoms ) that occured at about 11.00 a.m. ( at 3560 ) but had a buy position been taken here , you would probably may have lost some money here ( about 6 points ).
So how about today ? In a very very short term, the market is still bearish ;
1) If the market opens between 3570 to 3580. Buy after the market has passed the level 3590 to 3596. The market may go up further and a white bar is expected to be formed today especially if it manages to pass the level 3625 to 3630.
Sell if the market manages to pass down the level between 3563 to 3570 but the market may rebounce back in a short time. If the market manages to pass the level 3560 and below, look for a clear pattern of trendlines ( 2 bottoms ) to long.
2) If the market opens between the level 3590 to 3515. Buy after the market has droped a 'bit' or / and after the market has moved up a 'bit'. See bold letter as at #1 above
3) If the market opens above 3515. I don't know, man , it is your call but if the market manages to beat the level 3625 to 3630, the market may go up further and a white bar may be formed today.
4) If the market opens between the level 3543 to 3570. Sell after the market has moved up a 'bit' or / and after the market has fallen down a 'bit'. The market may rebounce back trying to pass the level 3590.
5) If the market opens below 3543. I don't know, it is your call. If , after opening, the market opens and moves up in a fast and sharp gradient, ( you can long here - if not sure just forget it ) , the market may end a white bar or at least in the early part of the trading day.
6) Please refer to my posting on last thursday ( see #9)
7) Please refer to # 9 on yesterday's forecast
8) Please refer to # 10 on yesterday's forecast
Well, that's about it, my forecast in brief ( is it brief ? ). If not sure contact your broker, it is just a matter of forecasting, I may be right or may be wrong...... blah..blah.
Have a nice day!