Kuala Lumpur Stock Market : Crude Palm Oil Futures - 21 June 2007 !
Kuala Lumpur crude palm oil futures: Maintain long/Sell-stop @ 2335 OL/T.P. @ 2560
SEPT CPO futures closed lower by RM59 at 2377 on relatively steady volume of 6,597 lots.
1. We were stopped out at 2414. We did not short.
2. We are still of the view that yesterday was a pullback towards the 62% support area of 1377, and a rebound will ensue.
3. We are thus re-entering long and place sell-stop at 2335 OL to exit long but do hot short.
4. This is still the “b” wave of the bigger wave “b”. Look for the “c” wave upwards to complete a big “b” wave at 2560.
5. Next target is still at 2560.
General commentary: We were incorrect to look for a rebound. CPO fell further today. We were stopped out. But we are re-entering today. Look for a rebound today to test 2560. Sell-stop is now at 2335 OL.
Next upside targets: 2560/2749 (hit)/3313 (targets revised on June 5)
Downside support: 2466(hit)/2393(hit)/2307/2223/2153
Ichimoku chart: (Based on kumo (clouds), CPO is long. Kumo support is at 2111. Ichimoku chart will turn short @ 2110 OL (updated on June 11, 2007)
Average True Range for CPO: A.T.R. is 109.36 for CPO. This implies you need to put a stop above/below this A.T.R. or you can get stopped out due to the volatility factor. We advocate a 1.5 x or 2 x the ATR. We are using a 5 days ATR. By: Fred Tam Article Source: http://www.ArticleDashboard.com Fred Tam is the owner of www.fredtam.com and
www.picapital.com.my F1 Trader Online - Know when to enter & exit the markets.
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