Tuesday, October 8, 2013

Travelling In Range, Sideways Before The Storm ? 8th Oct 2013

Tuesday, 8th Oct 2013. Palm oil futures still need more time to breach from current 60 points trading range and it will need much help from Soy oil and other news to do it. Other news to follow.

"- U.S. stocks declined on Monday, with the S&P 500 index closing at a four-week low, as a stalemate on Capitol Hill over preventing a government default persisted. After an almost 152-point drop, the Dow Jones Industrial AverageDJIA -0.91%  shed 136.34 points, or 0.9%, to 14,936.24, with Visa Inc.V -2.18%   and American Express Co. AXP +0.19%   leading declines that included 27 of its 30 components. The S&P 500 index SPX -0.85%  fell 14.38 points, or 0.9%, to 1,676.12, with consumer discretionary pacing losses and telecommunications the best performing of its 10 sectors.

The Nasdaq Composite COMP -0.98%  shed 37.38 points, or 1%, to 3,770.38."
"-Japanese stocks fell early Tuesday, with trading starting shortly after the Ministry of Finance said the country's current account showed an surplus of ¥161.5 billion ($1.67 billion) in August, a 63.7% drop from the year-earlier period and below forecasts of ¥540 billion, according to Dow Jones Newswires. The Nikkei Stock Average JP:NIK -0.74% fell 66 points, or 0.5%, to 13,786.98."
"- Crude-oil futures settled lower on Monday, pressured by a lack of progress toward ending a U.S. government shutdown and an upcoming deadline to avoid a debt default, but prices managed to close above $103 a barrel for a fourth session in a row. Natural-gas prices, meanwhile, rallied on the back of production losses last week in the Gulf of Mexico and other weather-related concerns. Crude oil for November delivery CLX3 +0.05%  declined 81 cents, or 0.8%, to settle at $103.03 a barrel on the New York Mercantile Exchange. Prices, which last week gained 0.9%, held their ground above $103 for a fourth-straight session."
"-November Soybeans finished up 1 1/2 at 1296 1/2, 8 1/2 off the high and 8 up from the low. January Soybeans closed up 2 at 1297. This was 8 up from the low and 7 off the high. December Soymeal closed up 2.4 at 420.8. This was 4.7 up from the low and 1.9 off the high. December Soybean Oil finished down 0.34 at 39.9, 0.59 off the high and 0.08 up from the low. November soybeans closed 1 1/2 cents higher on the session after choppy and two-sided trade. The market traded as much as 10 cents higher on the day in overnight action but since 5:00 am has been only able to trade unchanged on the day at best and was trading lower on the day into the mid-session. Talk of profit-taking and ideas that spread traders are exiting soybean/corn spreads helped to pressure. Traders see improving weather for South American this week as a negative factor. In addition, US harvest is expected to pick-up with 5-6 days of mostly dry weather ahead. Traders believe harvest is about 20-22% complete. A turn up in meal into the mid-session helped support the bounce. Weather leans bearish for South America and the US but meal demand was the positive force for today."

FCPO- Wait For It, Wait For The Break Out  !!! 

Alright everyone who were trading with higher time frame with hourly chart and above should pretty much experiencing tough sessions for the past few weeks when the benchmark month continue to move on narrow range after coming out from certain trading range or break out. It was a tough day for those traders who placed their bets using higher time frame. Well, sadly enough market does not care, it can move within these tight trading range without any time limit. So, for those higher time frame traders, nothing you can do other than suck it up like a man and keep your trading journal alive. Good news for intraday traders though, everyday there is something for you to grind in and out of the market. Whether you are higher time frame trader or shorter time frame trader, you must be able to give time for your system or trading plan to work, and that including suck it up when your strategies are taking losses or draw down. Back to the market, the benchmark Dec is currently sitting at 2,318 level after hitting yesterday high at 2,329. The box range illustrated on the hourly chart above shows that palm oil futures is still travelling on ranging mode within 2,334~2,283 area. Breaking out above or below this range will likely bring more explosives move judging from how long this range has last. For intraday traders, draw out your gun and prepare to fire your target, be particular about picking your target to conserve your ammunition. For today, pivot support for Dec contract is located at 2,304 while resistance is pegged at 2,330.

Daily Pivot Point
R2= 2342
R1= 2330
S1= 2304
S2= 2290
 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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