Tuesday, February 18, 2014

FCPO: New Record High, Coming !!!!

Tuesday, 18th Feb 2014. Palm oil futures rallied closed to previous high yesterday amid good export data from independent cargo surveyor. Other news to follow.

"-U.S. stock market futures traded higher on Monday in a shortened session of trading as the regular market observed the President's Day holiday. Futures for the Dow Jones Industrial Average DJH4 +0.17% rose 27 points to 16,154, while futures for the S&P 500 SPH4 +0.11% rose 2.3 points to 1,837.30 and futures for the Nasdaq 100 index NDH4 +0.17% gained 5 points to 3,666. European stocks traded mostly higher, while in other markets, gold for April delivery GCH4 +1.91% rose $9.20, or 0.7%, to $1,327.80, and silver for March delivery SIH4 +6.69% gained 39 cents, or 1.8%, to $21.80 an ounce. Oil prices were also higher, with March crude CLH4 +0.42% up 58 cents to $100.88 a barrel. The dollar was largely holding steady against major currencies. Stock futures will trade until 11:30 a.m. Eastern Time on Monday, then re-open at 6 p.m. Eastern."

"-Asian markets rose on Monday, with Hong Kong leading the region higher, while Japanese stocks were weighed by the release of disappointing growth numbers. Hong Kong’s Hang Seng Index added 1.2% and the Shanghai Composite rose by 0.3%, after Chinese bank loans jumped more than expected in January, with financial institutions issuing 1.32 trillion yuan ($217.6 billion) worth of new loans last month. Although Chinese banks typically make more loans at the beginning of the year, it was interpreted by the market that demand in the economy is strong."

FCPO: New High In The Making.

You heard it right, the upside momentum for FCPO is likely to stay, at least breaking the previous eight weeks high around 2,692 level. No it is not a fantasy to hit that level as the new May contract is just ten points away from it. Better still, the market might just open above 2,692 level today and wipe out most of the Short holder soon. What would you do if that event materialized, you can either do nothing and wait for a pull back to Long (if there is any pullback) or Long at open above 2,692 level because it is a valid upside break out. This break could have brings you, five to ten points higher after you Long. Well, do not take my word for it, let us see how high the market could go after it breach above 2,692 today. On technical overview, there is no sign of Bearish reversal yet, not even a shadow of it. The ability for the May contract to recover substantially signifies that the Bullish momentum still running strong for the moment. And if it does break above 2,692 level, more upside will follow. Another good news would be increased demand on the palm oil export, shipments from Malaysia rose 32 percent to 606,190 tons in the first 15 days of February from the same period a month earlier, Intertek, a cargo surveyor said. Palm oil output would also slow down due to dryer than expected weather currently. For today,  pivot support for the May contract is located around 2,657 while resistance is pegged at 2,708.

Daily Pivot Point
R2= 2708
R1= 2695
S1= 2657
S2= 2632
 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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