Tuesday, February 25, 2014

FCPO: Sign Of Bulls Slowing Down ? 25th Feb 2014.

Tuesday, 25th Feb 2014. Palm oil futures manage to clock 14 months high around 2,777 level yesterday but some profit taking forced the market to closed lower. Other news to follow.

"-U.S. stocks ramped higher on Monday, boosted by M&A activity, an upbeat German confidence report and bets that the S&P 500's foray into new high ground could spur further buying. The main indexes finished with solid gains, but ended well off their session highs as the S&P 500 SPX +0.62% failed to score a record closing high. The benchmark index rose 11.46 points, or 0.6%, to finish at 1,847.71 -- just below its Jan. 15 record close at 1,848.38. It had been up more than 22 points intraday. The Dow Jones Industrial Average DJIA +0.65% gained 105.83 points, or 0.7%, to end at 16,209.13. The Nasdaq COMP +0.69% added 29.56 points, or 0.7%, to close at 4,292.97. "

 "-Hong Kong stocks fell in early trade, with property-related shares and bank stocks among the decliners as the Hang Seng IndexHK:HSI -0.80% lost 0.9% to 22,362.00. As for mainland Chinese names, the Hang Seng China Enterprises Index fell 2.1% in Hong Kong, while the Shanghai CompositeCN:SHCOMP -1.75% lost 1.7%. Real-estate developers -- especially those with strong mainland exposure -- traded mostly lower."

"- Natural-gas futures on Monday dropped 11%, suffering a hefty retreat after an even bigger-sized climb last week as traders readied for this week’s options and futures expirations for the March contract. Oil prices, meanwhile, finished higher as violence in the Middle East threatened the global supply outlook and data showed financial investors had returned in droves to the commodity. Natural gas for March deliveryNGH14 +0.44%  dropped 69 cents, or 11%, to settle at $5.445 per million British thermal units on the New York Mercantile Exchange, the lowest close since Feb. 14."

FCPO- Bulls Might Go Off For A Short While


Palm oil futures closed lower yesterday after the benhcmark May clocked the highest reading at 2,777 since Sept 2012. Yes, no kidding that is the high achieve yesterday and if you are not aware, this would be potent uptrend in long term after the benchmark month has breached above most of the major resistance level starting from 2,600 all the way to 2,700, steadily. Now, we might facing what we call a retracement period judging on yesterday closed value. This situation is not definitely a good news for new Long holder who went in late, certainly they (the Long holder) have their limitation how bad the market can go against them before they would cut their losses and pull the plug out. Fortunately, a sign is still a sign until it is happen. There is no confirmation for the market to retrace substantially from this point other than the lower closing yesterday. But with all things set aside, palm oil price should be susceptible for further retracement if previous yesterday low is violated later today. If that event materialized, the next major support would be located around 2,700 this week. For the external factor, independent cargo surveyors ITS and SGS will be announcing their palm oil export data later this afternoon. Lower opening session is expected this morning judging on lower overnight closing on Soy oil.

Daily Pivot Point
R2=2798
R1=2769
S1=2729
S2=2713
 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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