Tuesday, January 28, 2014

FCPO: Starting To Jump Down !!!! 28th Jan 2014

Tuesday, 28th Jan 2014. Palm oil futures retreated substantially yesterday amid continuous weakness on Soy oil recently. Sluggish demand that dampen export figure would reduce palm oil price appeal to go up. Other news to follow.

"-U.S. stocks ended Monday lower in a volatile session as worries over emerging-markets currencies unsettled investors. Stocks began the day on a higher note following upbeat results from Caterpillar, but fell after home sales data showed a larger drop in December than anticipated. Indexes tested key technical levels adding to the steep losses from their worst week in over a year, after downbeat data from China and selloffs in emerging-markets currencies triggered a global flight from equities. The S&P 500 SPX -0.49%  ended the session 8.73 points, or 0.5%, lower at 1,781.56, after briefly venturing into positive territory in late trade. The Dow Jones Industrial Average DJIA -0.26% closed down for the fifth-straight session. The blue-chip index opened higher, buoyed by upbeat earnings and forecast from Caterpillar Inc, but closed 41.23 points, or 0.3%, lower at 15,837.88.

The Nasdaq Composite COMP -1.08%  was the worst performing index on Monday. At session lows, the index fell through its 50-day moving average, but pared some of the losses in late trade. The tech-heavy index lost 44.56 points, or 1.1%, to 4,083.61."

"A selloff in global markets turned to Asia with stocks across the region plunging in trading on Monday morning as worries grow over slowing growth in China and signs the U.S. will ease back on stimulus. Investors are instead racing into assets considered safe in times of turmoil, with the yen trading near a seven-week high and gold rising 0.3%, taking gains this year to 5.5%. Japan’s Nikkei slumped 2.7%, falling below 15,000 for the first time since mid-November, and was last trading at 14975.77. The global selloff started last Thursday triggered by a report showing China’s vast manufacturing sector had contracted, exacerbating worries about how the global economy will fare as the U.S. pulls back from aggressive monetary easing. The declines first hit developing economies with currencies in Argentina and Turkey falling especially rapidly, plagued also by troubles at home. But the selloff has since spread to more advanced economies with the U.S. tumbling Friday, and Japan now down 8.1% this year as the stronger yen hurts exporters."

FCPO- It is Starting To Fall.

Yes, you heard it right, palm oil futures have more reasons to fall rather than recover this week. More traders are likely to dump their Long holding prior to long holiday weekend. It is not a pleasant sight to see the soy oil plummet to new three years low trading at merely 37.08 per pound. The only place for the palm oil futures to open is down south, it is unlikely we are going to see promising recovery after that as well. The Bears are out for blood this time, more weakness to come for the benchmark April. The previous recovery that brought the benchmark month to 2,600 will soon be history this week. Looking at daily chart,  there is an obvious lower high formed right after the April contract gap down on open yesterday plus lower low when the market dipped slightly below 2,556 level. Looking at technical term, Long holder that just happen to went Long yesterday would have to prepare for their equity funeral because there is going to be a steep dive on today's opening. No help from the external factor as well, export for Malaysia palm oil drop 9.4%~10.53% for the 1-25th Jan vs Dec period. Today game plan would be going Short in the market does recover close to 2,562~2,574 level or Short at the opening if the market does gap down below 2,555 level and target for 10 points quick buck.

Daily Pivot Point
R2= 2592
R1= 2574
S1= 2544
S2= 2532

Soy oil New 3 Years Low
Soy oil closing at three years low overnight, and did not show any sign of stopping yet. Get your gear ready to Buy ? Do not count on it, Bulls are still absent.

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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