Wednesday - 25th February 2009
8.30 a.m. - Malaysian Time

The CPO ( crude Palm oil ) futures for May contract open at 1859 and closed at 1871 yesterday. The highest was at 1878 and the lowest was at 1828. The market ended a white bar.

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Yesterday's market opening was not within the forecasted levels, so no further analysis is to be done today

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Today

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If you look at the chart, the market is still in the sideline phase which means that you should be buying where you are supposed to sell and vice versa. Anyway, in the long run the market is still bearish but in the very very short term, the market is slightly bullish;

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1) If the market opens between 1868 to 1878. Buy after the market has moved up passing the levels between 1882 to 1887.

2) If the market opens between 1844 to 1854. Sell after the market has retraced passing down the levels between 1835 to 1840.

3) If the market opens between 1855 to 1867. Buy after the market has retraced 6 points from the opening level. Be careful of the false alarm ( false fall ) and do not forget your stop loss.

4) If the market opens above 1901. The market may go further up especially if it moves up in a fast and in a steep gradient immediately after opening.

5) If the market opens below 1819. The market may go down especially if it retraces in a fast and in a steep gradient immediately after opening.

6) If the market opens other than the above, it is your call. I have no idea.

7) Please refer to # 6 ( 12th January's posting)

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If you are not sure, do contact your dealer but not Shylock - The Jewish money lender in The Merchant of Venice by William Shakespeare.

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Have a nice trading day!!!

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