Monday, October 19, 2009
Crude palm oil futures gap up this morning but failed sustain the upward movement and unable to established a direction for itself ended the day with a doji bar candle to closed at 2197, 19 points higher. Market manage to test above the 2200 psychology level but failed to hold on after facing some selling pressure toward near the end just before closing. But in terms of chart wise, FCPO do look better by closing above the mid Bollinger Band indicates that underlying demand for FCPO remain firm. Bollinger Band width also turned from narrowing into expanding after this morning gap up. MACD Histrogram continue to rise suggest that buyer has yet to leave FCPO alone.
When to Buy : Buy on dip or break up with larger cut loss and profit targer.
When to Sell : Sell only when price break below mid Bollinger Band with small cut loss and profit.
Once again the Malaysia Boleh spirit and this coming Friday budget announcement push the FKLI to another new high of 1267 before retracing down lower to closed at 1265, up 2 points. At closed today FKLI white bar candle sticking with the upper Bollinger Band proved that there is still no sign of the current bull run exhaustion. Bollinger Band width still expanding to allow for the bull to run up further. MACD Histrogram continue to climb higher leaving seller no choice but to close position. Another thing to take notice is that Hong Kong Hang Seng futures is doing discount of 60 points againts its cash market.
When to Buy : Buy on dip or at support with quick stop loss and profit.
When to Sell : Sell to take profit only.
The Dow ended Friday lower down by 67.03 points to closed below the 10,000 mark at 9995.91. Looking at the chart, DJIA still stay above mid Bollinger Band suggest that the market still remain bullish. Bollinger Band width also widen but at a slower pace indicate that there is still some room for market to move up further. However MACD Histrogram weaken by a tiny little bit telling us that profit taking toke place due to the weekend effect. Due to the fact that the trend is still up, thus buying on dip or break up is preferred.
FKLI gap down due to the Dow closed lower last Friday but jumped up quickly to closed at 1262.5. Still stayed above the mid Bollinger Band at the closed of the morning session shows that market upward momentum still retained the same. Bollinger Band width also continue to widen suggest that market can still potentialy go higher. MACD Histrogram stay flat suggest that buyer can seller are still competing to take charge of the market. Long position trader should trail or park stop to protect profit.
Crude palm oil futures gap up and traded in the range of 26 points in response to firmer soy oil futures price to closed at 2207, up 29 points. Hourly chart wise, all three indicators : the Bollinger Band, Bollinger Band width and the MACD Histrogram also biased to a upward movement for FCPO together with encouraging volume transacted. Traded in a small range, may be due to the reason market awaits tomorrow export figure data by two cargo surveyors : ITS and SGS.
Trader should monitor the 0.17 resistant level for IPOWER. Should it break above, then the next target will be 0.20 ~ 0.21 level.
At last look, soy oil futures traded up 0.17 at 37.11. The only thing trader need to monitor here will the MACD Histrogram that might forming a rounding top. China Dalian palm oil futures also traded higher currently.
Hovid daily chart has break above it near term resistant line and now marching into the next resistant level at 0.29. Should this upward movement continue, then the 0.34 level will be a big challenge for Hovid. All the indicators(Bollinger Band and MACD) also giving a positive signal for Hovid.