Palm | Kelapa Sawit

The CPO ( crude palm oil ) for September's contract open at 2500 and closed at 2484 yesterday. The highest was at 2536 and the lowest was at 2434 with a total of 102 points traded.

The performance of the CPO was greatly influenced, lately, by the performance of world's crude oil. Yesterday, the crude oil was traded the lowest since August this year.Will the CPO futures follow suit to this phenomena? Yesterday also saw the performance of the soya bean oil was traded lower. How about today ? As the strategy used in this blog is based on the opening of the market, let's look at the forecast for today's market performance.

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Today

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In the long term, the market is still bearish, so is the very very short term.

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1) If the market opens between 2445 to 2490. Sell after the market has moved up 11 to 21 points after opening or if the upwards movement is less than 10 points, sell after the market has passed 6 points below the opening level - just be extra careful, it may be a false alarm ( by the time you sell at this point, the market starts to move up ) which happens quite prequently. As usual, be careful of the false alarm and also your stop loss. If the market manages to beat up the level between 2500 to 2507, the market may move up further especially if the market opens more towards the upper side of the 2445-to-2490 levels. If you see any profits, just lock them up immediately, the market may retreat back. But if the market manages to beat up the level between 2536 to 2543, the market may move further up and a white bar may be formed at the end of the day. If the market manages to beat down the level between 2426 to 2434, the market may fall further especially if the market opens more towards the lower side of the 2445-to-2490 levels and if the market, again, beats down the level between 2399 to 2406, the market may fall further and a black bar may be formed today.

2) If the market opens between 2490 to 2500. Buy after the market has moved passing up the level between 2500 to 2507. See also the bold letters as at #1 above.

3) If the market opens between 2434 to 2445. Sell after the market has moved down passing the level between 2426 to 2434. If, again, the market manages to beat down the level between 2399 to 2406, the market may fall further and a black bar may be formed today.

4) If the market opens between 2500 to 2526. Buy after the market has drop a bit after opening, and moves up 6 points above the opening level.Be careful of the false alarm etc....

5) If the market opens between 2410 to 2434. Sell after the market has moved up a bit and retraced passing 6 points below the opening level. Be careful of the false alarm etc....

6) If the market opens above 2526 It is your call but I think the market may fall after a short while and a black bar would be formed at the end of the day

7) If the market opens below 2410. It is your call but I think the market would fall (or see also bold letters as at # 5 as above if the market opens "not that far "below the level 2410 ) further especially if the market manages to beat down the level between 2399 to 2406. If the market opens at 2400, the market may fall further at least in the early part of the trading day.

8) Also look for trendlines such as 3 tops/bottoms etc... ( if you are not familiar, better stay away from the market )

9) Please refer to # 9 ( Thursday's Tips dated 26th June )

10) Also refer to # 9 and #10 ( Tuesday's Tips dated 1st July )

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If you are not sure, just refer back to your broker.......off course not your house broker.

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Have a nice trading day!!!!!!

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