Monday, July 1, 2013

Today Lesson, Support And Resistance 1 Jun 2013

Monday, 1 Jun 2013. The stock market has recovered steadily for the past three session mainly due to oversold conditions recently. Other news to follow.

"-U.S. stocks rose during the second quarter, but ended June with losses as investors started to come to terms with the potential slowdown in the Federal Reserve’s monetary stimulus program.

For the second quarter, the Dow Jones Industrial Average rose 2.3%, the S&P 500 gained 2.4% and the Nasdaq Composite climbed 4.2%. On Friday, the Dow DJIA -0.76%  and the S&P 500 index SPX -0.43%  ended lower, while the Nasdaq Composite COMP +0.04%  eked out a small gain. The S&P 500 ended Friday down 6.92 points, or 0.4%, at 1,606.28, leaving it up 0.9% for the week and down 1.5% in June."
"- Mainland Chinese and Hong Kong stocks rose Thursday in the wake of a strong advance for U.S. equities overnight, with a robust growth in industrial profits for mainland companies providing a further boost. The Shanghai Composite CN:SHCOMP +1.50% , which had dropped in 15 of the past 17 sessions, climbed 0.8% after data showing from the year-ago period. In Hong Kong, the benchmark Hang Seng Index HK:HSI +1.78% added 0.9% and the Hang Seng China Enterprises Index gained 1.3%, with banks extending their strong gains from Wednesday. "
"-Oil futures ended a choppy session in negative territory Friday, posting a second-quarter decline in the wake of mixed economic data and a rising dollar.
Crude for August delivery CLQ3 -0.45% CLQ3 -0.45% fell 49 cents, or 0.5%, to end Nymex floor trade at $96.56 a barrel. That trimmed oil’s monthly gain to 4.7% and left the contract with a second-quarter fall of around 1%."
"-July Soybeans finished up 16 at 1564 1/2, 10 off the high and 26 1/2 up from the low. November Soybeans closed down 23 1/4 at 1252. This was 1 1/2 up from the low and 27 3/4 off the high. July Soymeal closed up 10.7 at 490.3. This was 17.0 up from the low and 1.2 off the high. July Soybean Oil finished up 0.02 at 46.42, 0.36 off the high and 0.54 up from the low. July soybeans are traded sharply higher on the day but the new crop market ended in negative territory. Bull spreading was active throughout the session due to strong cash values in the interior of the Corn Belt. The USDA report was considered neutral to slightly supportive against trade expectations. However, weakness in corn and the outlook for improved weather ahead helped to push futures lower after the release. US soybean planted area came in at 77.728 million acres as compared with trade estimates near 77.925 million acres and up from 77.2 million from the March intensions. The range of estimates was 77.1 to 79.2 million acres. June 1st Quarterly Stocks came in at 434.5 million bushels compared with trade expectations at 442 million. This is down from 667 billion last year. The high end of the trade estimates was at 500 million bushels with the low end at 413 million."

FKLI- Recovered Due To Better Than Expected Performance On Regional Stock Market

Yes, you read the headlines correctly, today lesson is support and resistance. I can safely tells you that most of the investors knew what are those level and in fact they can even spot it the minute price retrace or pull back up from the high or low. In my years of trading experience, these are the best single tool and the most reliable value for every traders to pay attention to. Price that breach above resistance level will likely force the market to continue rally and price that breach below support level are likely signifying further price weakness. But then again, most of us would like to use other "advance" indicators or technique that would cloud up your trading decision and confuse you. Less and less traders prefer simple and clear cut way to look at the market. Looking at the stock index, most recovery that it made recently might due to positive performance occur on regional market and U.S market.  But I would like to put it in technical term, or should I say in the chart. The first recovery sign was made on 26th Jun with rounded bottom formation, followed by a open gap up session on 27th and 28th Jun. So there you have it, two gaps up in two sessions straight. That is the strong Bullish reversal signal for you to Long on open and watch your account grow. If you have done just that, congratulation. If you did not, we still have plenty of trade set up this week. Stay tune!!

Daily Pivot Point
R2= 1761
R1= 1756
S1= 1743
S2= 1736

FCPO- No Sign Of Recovery Yet 


Palm oil futures fail to recover on previous Friday after it stop to rallies pass over 2,375 level, the rest was a negative day. Palm oil price is still trap within Bear's paw even though there was some positive figures on export figure.  Price continue to dip down right after it hit 2,375 level on the second session opening, signifying strong Bulls rejection and the market kept on falling till it hit a new four weeks low down to 2,341 level. Technically, palm oil futures for Sept contract continue to record Bearish play which is likely to continue this week. No Bullish reversal sign yet so far and that would make overall outlook even more Bearish for the moment. Other than 2,300 psychological, there is no telling how low this price can go. Forward contracts months are now appear to be traded on "backwardation," where price for palm oil futures is cheaper for further months. Theoretically, we suppose to expect a "Con-tango" reading if there is any Bullish reversal occur this week. Other than that, traders are advise to go Short if there is any attempt for the Sept to rallies close to resistance level. For today, pivot point support for the Sept contract is located around 2,331 while resistance is pegged at 2,370.

Daily Pivot Point
R2= 2385
R1= 2370
S1= 2343
S2= 2331
 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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