Wednesday, October 12, 2011

20111012 1818 FCPO EOD Daily Chart Study.

FCPO closed : 2864, changed : +63 points, volume : higher.
Bollinger band reading : pullback correction downside biased.
MACD Histrogram : recovering, seller closing position and buyer testing market.
Support : 2850, 2800, 2770, 2750 level.
Resistance : 2900, 2920, 2950, 2970 level.
Comment :
FCPO closed recorded substantial gains with better volume participation while overnight soy oil closed recorded huge gain and currently between gain and losses while crude oil also moving in between positive and negative zone.
Overnight soy oil surged, news on China started buying soybean and soy oil for reserve and improving exports outlook pushed FCPO price testing higher resistance level. Having said that, markets still awaits tonight USDA forecast report for further market direction.
Daily chart formed an up doji bar candle closed nearer to middle Bollinger band after market opened gap up, traded side way range bound through out the day followed last hour climb before easing little lower to closed off the high of the day.
Market still likely to have pullback correction within a downside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

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