Tuesday, October 18, 2011

20111018 1812 FCPO EOD Daily Chart Study.

FCPO closed : 2835, changed : -41 points, volume : lower.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : turned lower, buyer lock in profit and reducing exposure.
Support : 2800, 2770, 2750, 2720 level.
Resistance : 2850, 2900, 2920, 2950 level.
Comment :
FCPO closed recorded loss again with lower volume traded while overnight soy oil closed recorded loss and currently trading weaker testing lower support level while crude oil price also head south recording loss.
Worry on slowing down China economy data (9.1% GDP, lowest quarter in 2 years) and resumed concern over dragging Europe debt crisis issue may affect lower demand resulted broad commodities prices to trade lower.
Daily chart formed a down doji bar candle positioned below middle Bollinger band after market opened gap down, soar higher tested above resistance level followed by second session downward movement tested near support level and recovered slightly to closed off the low of the day.
Chart study still suggesting a side way range bound 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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