9.02 a.m. - Malaysian Time
The CPO ( crude palm oil ) futures for Jun contract open at 1925 and closed at 1911 yesterday. The highest was at 1945 and the lowest was at 1893. The market ended a black bar.
The market open at 1925 and immediately shot up to 1940 at 10.31 a.m. ( see A ) and moved further up to 1945 , the highest of the day, at about 10.32 a.m. ( see B ). The market then retraced steadily from 1940 to 1930 for about
lunch at 1927. The market moved further down in the afternoon and finally settled at 1911.
If you look at my forecast yesterday ( see # 1 ), the market open within the forecasted level and moved up steeply to 1945 from 1925, a difference of 20 points. This fast movement could have indicated a false alarm but the linggering of the market ( see x and y on the graph - also see my previous postings on this matter ) between 1930 to 1940 showed that the movement could not have been the false alarm.
So had you decided to short ( if you were not sure, just stay away from the market ) , say at 1935 or even at 1931 - 6 points above the opening level - you would have been able to make a profit of 10 points , if you decided to close your position before lunch. If you prolonged your decision to close your position after lunch, the profits aquired could have been from 20 to 40 points.
Well, due to some reasons, I am not able to do any forecasting for today. Those who have been following my blog may probably have the idea of how to go about forecasting the market today.
Have a nice trading day, guys!!!