Oil UP, OPEC's Production Cut?

Monday - 5th January 2009
9.00 a.m. - Malaysian Time

The CPO ( crude palm oil ) contract for March open at 1711 and closed at 1740 on last Friday. The highest was at 1748 and the lowest was at 1706. The market ended a white bar.

The market open at 1711 and had been linggering for about 2 minutes between the levels 1712 and 1707. The spread between buy and sell was quite moderate. The market then moved up to 1721 before retracing to 1709. The market moved up again to the highest of the morning session at 1725 before settling at 1721 before lunch. In the afternoon, the market kept moving up until finally settled at 1740. ( see graph )

If you look at my forecast on last Friday ( see # 5) and had a buy position at 1718, you would probably have made ; a very few points if you had decided to close your position before lunch ; quite a handsome ones if you had decided to close position after lunch. Any way the most important thing here was that you still managed to make some profits.

Today

For those who are still looking for a reversal position, may be you can focus on the 'swing strategy' ( see my previous posts - sorry, I am not sure where ). There has been 5 white bars on the row. Any way, I think this reversal may not last long, just be careful!

I would not be making any forecast for this week.

So, have a nice trading day.

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