9.15 a.m. - Malaysian Time
Yesterday the CPO ( crude palm oil ) futures for October contract open at 2750 and closed at 2750. The highest was at 2787 and the lowest was at 2700.
The market open at 2750 which was far below than the forecasted level. So , theoretically, there was no money to be made yesterday. It is better not to enter the market rather than entering the market without proper analysis and at the end of the day, you end up losing money.As for trendlines, there was a pattern of 3 tops that occurred before lunch time but it was not a clear one. Any way a clear pattern of 2 bottoms had happened after lunch at about 4.30 p.m.If you are not familiar with trendlines....just stay away from it as it would be quite confusing to recognise the different between 2 bottoms and 3 bottoms.
So how about today? If you look at the chart, the Japanese candle stick, yesterday's bar was a doji and quite a long one. It simply means that the market is in the indecision position which is neither bullish nor bearish. Anyway the direction of the market would be implied by today's opening position. So, in the long run the market is still bearish and so is the very very short run.
1) If the market opens between 2712 to 2760. Sell after the market has moved up between 12 to 22 points from the opening. As usual becareful if the market moves up in a very fast and in a very steep gradient after opening, it could be a false alarm. If the market manages to break the level between 2771 to 2777, the market may go further up especially if the market opens more towards the upper part of the 2712 to 2760 level. If the market moves further up again and manages to beat the level between 2785 to 2790, the market may go further up and a white bar may be formed today or at least in the early part of it.Also make sure that the opening point is not within the 12 to 22 points from the level 2771 to 2778 .If the market manages to beat down the level between 2693 to 2700, the market may retrace further down especially if the market opens more towards the 2712 to 2760 level. If this happens, the market is expected to rebounce in short time.
2) If the market open between 2760 to 2771. Buy after the market has moved up passing the level between 2771 to 2778.
3) If the market opens between 2700 to 2712. Sell after the market has passed down the level between 2693 to 2700.
4) If the market opens between 2771 to 2795. Buy after the market has retraced a bit and then move up beating 3 points above the opening point.
5) If the market opens between 2675 to 2700. Sell after the market has moved up a bit and then falls down 4 points below the opening level. Be careful here, the market may fall a bit and is expected to rebounce at any time.
6) If the market opens other than the above , it is your call.
7) You can also look for a clear pattern of trendlines such as 3 tops/bottoms......If you are not familiar with trendlines .....just stay away.
8) Please refer to # 9 ( Thursday's Tips dated 26th June )
9) Also refer to #9 and # 10 ( Tuesday's Tips dated 1st July )
That's it, man. Have fun and don't be too serious. Some say, if the money is yours it would be yours if not it would be not.
Have a nice trading day!!!!!!!!