Thursday, January 9, 2014

FCPO: Hammer Out Of Downside 9th Jan 2014

Thursday, 9th Jan 2013. Palm oil futures went down yet again yesterday amid weak demand and negative price action on Soy oil does make thing worse. Other news to follow.

"- U.S. stocks closed mostly lower on Wednesday after minutes from the last Federal Open Market Committee meeting showed that a majority of officials judged the effects of the monthly asset purchases to be diminishing over time.

Investors also pondered the implications of an upbeat private-sector jobs report that was released on Wednesday morning. The S&P 500 SPX -0.02%  closed down less than a point to 1,837.49. On Tuesday, the benchmark index recorded its first gain this year, snapping a three-day skid. The Dow Jones Industrial AverageDJIA -0.41%  fell 68.20 points, or 0.4%, on Wednesday to 16,462.74, while theNasdaq Composite COMP +0.30%  rose 12.43 points, or 0.3%, to 4,165.61."
"-Hong Kong stocks rose early Wednesday, with the Hang Seng Index HK:HSI +1.25% up 0.9% at 22,912.14.   Japanese stocks weakened in early Thursday trading as the yen rose and Wall Street ended mixed, with the Nikkei Stock Average JP:NIK -1.53%falling 1.2% to 15,929.74 after a 1.9% advance a day earlier. With the yen USDJPY -0.03%slightly firmer than in the previous session."
"Oil futures settled at a six-week low on Wednesday, dropping below $93 a barrel after a U.S. government report showed that crude supplies fell for a sixth straight week, but by less than expected — and stockpiles of gasoline and distillates jumped. Still, news of strong growth in private-sector jobs in December helped buoy prospects for energy demand, while concerns over a possible escalation of tensions in Libya threatened a potential recovery in the nation’s oil production. Oil prices continued to trade lower following minutes of the Federal Reserve’s December policy meeting released Wednesday afternoon. February crude oil CLG4 +0.28%  fell $1.34, or 1.4%, to settle at $92.33 a barrel on the New York Mercantile Exchange, the lowest close since Nov. 27, according to FactSet data tracking the most-active contracts. Prices on Tuesday gained 24 cents, or 0.3%, to $93.67. That was the first climb in six sessions, as well as oil futures’ first session gain of the year."


FCPO- Is It Over For The Bears ? 

Not quite if you want to know the straight forward answer, Bears might still have some tricks under their sleeves before they call it quit. Palm oil futures went down to two months low yesterday when the benchmark March hit the lowest point at 2,530 before bouncing back to close at 2,548. Decreasing demand that made export figure to dropped last month plus the increase in stockpiles curb palm oil futures to rally for the moment. But that is not all, recent strengthening in U.S dollar also made up most of reason why commodities prices become weak, including Soy oil. Good news on the technical side, yesterday price action that does shed some light for the market to recover soon. Price recovery on the afternoon session after the market went down to 2,530 on the morning session does make the daily candle look like a hammer. Now, it is not a guarantee that palm oil futures will rally today, but if the price could went pass above yesterday high at 2,565, it will be a good start. Nonetheless, look out for any fail rallies if the March contract does not be able to breach above that level today. Otherwise, a healthy rally should be able to slowly build up by going up gradually from 2,558 and followed by 2,565 level.

Daily Pivot Point
R2= 2581
R1= 2564
S1= 2530
S2= 2513
 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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