Thursday – 18th December 2008
8.00 a.m. – Malaysian Time
8.30 a.m. - A little bit of updating
The CPO ( crude palm oil) futures for March’s contract open at 1561 and closed at 1580 yesterday. The highest was at 1586 and the lowest was at 1548. A difference of 38 points.
The market open at 1561, moved up a bit ( 1 point only ) and then fell to 1555. The market then linggered between 1555 to 1560, which showed that the fall was not a false alarm, for about 6 minutes before shooting up to 1583. The market then started to retrace to settle at 1563 just before lunch. In the afternoon, the market fell to the lowest of the day and then moved up again to the highest of the day before finally settling at 1580.
If a buy position had been taken at this linggering situation, say at 1556, ( see my forecast at #1 yesterday – buy after the market has dropped about 5 to 9 points after opening - the market in fact , dropped 6 points ) a profit of between 15 to 20 points could have been made. The market, did also manage to beat up the levels between 1570 to 1577 ( see also # 1) and it ended a white bar yesterday.
Have a nice trading day!