Friday, March 22, 2013

Bulls Might Running On The Right Track 22nd March 2013

Friday, 22nd March 2013. Palm oil futures managed to recovered further yesterday amid recent encouraging export data released on last Wednesday. Other news to follow.

"- U.S. stocks on Monday fell for a second session as Europe’s efforts to get a handle on a rescue of Cyprus provided enough uncertainty for a much-anticipated retreat on Wall Street. After a 109-point fall, the Dow Jones Industrial Average DJIA -0.62%   recovered nearly all of those losses only to resume its downward spiral amid conflicting reports on Cyprus. The S&P 500 index SPX -0.83%  shed 8.06 points, or 0.6%, to 1,552.10. Financial companies led declines among the index’s 10 industry sectors, while telecommunications was the best performer. The Nasdaq Composite COMP -0.97%  fell 11.48 points, or 0.4%, to 3,237.59."

"-Japanese stocks jumped Thursday ahead of a closely-watched press briefing by the new central bank governor, while mainland Chinese shares advanced after a preliminary reading on manufacturing activity showed an improvement. Elsewhere in the region, China’s Shanghai Composite Index CN:000001 +0.30%  rose 0.3% and Taiwan’s Taiex XX:Y9999 +0.18% inched up 0.2%. Hong Kong’s Hang Seng Index HK:HSI -0.14%  slipped 0.1% at the end of a choppy day’s trading that saw the benchmark change direction a few times. South Korea’s KospiKR:SEU -0.03%  fell 0.4% and Australia’s S&P/ASX 200 index AU:XJO +0.38% eased 0.2%."

"- Crude-oil futures clawed back to score a gain Monday, as the initial shock of the proposed bailout plan for Cyprus, which includes a levy on bank deposits, started to wear off. Crude oil for April delivery CLJ3 +0.05%  added 29 cents, or 0.3%, to settle at $93.74 a barrel on the New York Mercantile Exchange, after losing as much as 1.8% to touch a low of $91.76. Prices marked the highest settlement for a front-month contact since Feb. 20."

"-May soybeans are trading higher on the day as traders begin positioning for next weeks anticipated Stocks and Planting Intentions report. Officials in China announced overnight that a state-agency will release 1-1.5 million tonnes of soybeans to domestic crushers but the market shrugged off the bearish news and bounced higher. Export sales were disappointing this morning coming in at 107,800 tonnes for the current marketing year and 234,000 for the next marketing year for a total of 341,800 tonnes. As of March 14th, cumulative sales stand at 97% of the USDA forecast for the current marketing year vs. a 5 year average of 86%. Sales of 41,000 tonnes are needed each week to reach the USDA forecast. Net meal sales came in at 143,400 tonnes for the current marketing year and as of March 14th; cumulative sales stand at 95% of the USDA forecast vs. a 5 year average of 67%. Sales of 14,000 tonnes are needed each week to reach the USDA forecast. Net oil sales came in at 19,600 tonnes for the current marketing and as of March 14th, cumulative sales stand at 78% of the USDA forecast vs. a 5 year average of 62%. Sales of 8,000 tonnes are needed each week to reach the USDA forecast."

FCPO- Edible Oil Is Getting Some Support From Improving Demand

Market awaits those who are bold and willing to take risk, especially overnight risk. Much of the points were made when the market gap up and if you stay too conservative, chances are likely to be missed. The keywords here will be take action before it happen. In another words, a traders should have no problem pulling the trigger when a trade setup appear before them. Learning to pull the trigger without any doubts and hesitation was part of the practise to trade better and literally makes you a better trader. Cyprus financial unrest that yet come to any deal to resolve their mounting debt concern will be part of the external factors to watch. Back to palm oil futures, the benchmark Jun went up yesterday backed by surging soy oil prices and improving export data. Technically, Bullish momentum is expected to remain on medium term perspective judging on recent higher lows and higher highs candle formation on hourly chart. Not only that, the Jun contract also able to breached above previous major resistance level at 2,467, signifying strong Bulls commitment to push the price up. For today, after taking on three weeks high, the Jun contract is likely open slightly lower judging yesterday close and there might be extended profit taking for short term price outlook. Pivot support for benchmark Jun is located around 2,435 while resistance is pegged at 2,471 followed by 2,487 level.

Daily Pivot Point
R2= 2487
R1= 2471
S1= 2445
S2= 2435
Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.


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