Wednesday, May 26, 2010
The CPO ( Crude Palm Oil) futures for August contract open at 2485 and closed at 2436 yesterday. The highest was at 2491 and the lowest was at 2436. The market ended lower with a black bar and it was sellers' market.
The market open at 2485, moved up to 2490 and then fell to 2479( see enlosed graph ). At about 10.48a.m., the market moved up again to 2491, the highest of the day, and then closed at 2490 before lunch. In the afternoon, the market open at 2475, shot up to 2488 and then started to retrace slowly to finally closed at 2436, the lowest of the day.
If you look at my forecast yesterday, see #1, you have 2 choices here;
1) If you were to decide to put a sell position between 2474 to 2478, there was nothing happen, you did not lose any money.
2) If you were to decide to put a sell position at 2479 ( you have to que first, off course) and manage to get it, you would have been able to make profits up to more than 40 points provided if you were to wait to after lunch break ( you have no choice because if you decided to close your position just before lunch, you would have ended up losing your money).
That's about it , guys......
Have a nice trading day.