Tuesday, February 11, 2014

FCPO: Rose Above Four Weeks High !!!

Tuesday, 11th Feb 2014. The benchmark April rose up to four weeks high yesterday when it closed at the high, 2,617 level. Other news to follow.

"-DJIA +0.05%traded in negative territory for most of the session but closed slightly higher, up 7.71 points, or 0.1% at 15,801.79. The S&P 500SPX +0.16% closed up 2.82 points, or 0.2% at 1,799.84. The Nasdaq Composite COMP +0.54%ended the day 22.31 points, or 0.5%, higher at 4,148.17, lifted by gains in Apple Inc.AAPL +0.02% , its heaviest weighted component. "

"-Asian markets were higher Monday, as the region continued to recover from last week’s brutal selling. Japan’s Nikkei was up 1%, after the dollar rose 0.2% against the yen on Friday, stabilizing at ¥102.35 on Monday. Elsewhere, Australia’s S&P ASX 200 added 0.5%, South Korea’s Kospi was up 0.2% and Singapore’s Straits Times Index rose by 0.2%. Hong Kong’s Hang Seng Index however, was 0.1% lower."


"-Oil futures settled above $100 a barrel on Monday for their highest close of the year as traders looked toward this week’s economic data and monetary policy testimony from Federal Reserve Chairwoman Janet Yellen for cues on the next direction for prices. March crude oil CLH4 +0.02%  tacked on 18 cents, or 0.2%, to settle at $100.06 a barrel on the New York Mercantile Exchange after tapping a high of $100.55 during the session, which marked the fifth-session climb in a row."
FCPO: More Upside To Come, But With Some Retracement Along The Way

Yes, you heard it right, there will be turbulence along this rally. It would not be smooth, nothing is. The benchmark month has been running on choppy direction when it has one. For example, there will be choppy upside couple with swift retracement along the way even when the price action is showing obvious further rally. No magic tricks here as this is expected throughout any medium to long term uptrend. Profit taking will chime in and market could open lower if there is no new high made on Soy oil. For today, the benchmark April might open slightly lower due to slightly weaker closing on overnight Soy oil but overall or medium term trend still seem positive for the moment. Things are looking better on technical side, the April contract price action is suggesting prolong upside rally based on higher low and higher high candle formation in daily chart. Pretty obvious it is a positive price action as the Bullish candle formation happen not on hourly chart, but on daily chart. On the external side, palm oil stockpiles dropped to the lowest level in three months in January as output in the world’s second-biggest producer after Indonesia tumbled to a seven-month low. Inventories fell 2.6 percent to 1.93 million metric tons from a month earlier, while exports lost 9.9 percent to 1.37 million tons, the Malaysian Palm Oil Board said today. The median of estimates in a Bloomberg survey was 1.98 million tons for reserves and 1.35 million tons for exports. Production fell 9.6 percent to 1.51 million tons, in line with the survey and the lowest since June, according to board data. Another hurdles to overcome would be slowing down demand expectation on first quarter of 2014. Buying opportunity arise if the April contract does retrace to 2,596 level today (first pivot support level) while intraday profit taking level should be occur when the price hit 2,638.

Daily Pivot Point
R2= 2638
R1= 2627
S1= 2596
S2= 2576
 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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