Thursday, March 6, 2014

FCPO: Drought Curb Output, Benefit Price 6th March 2014

Thursday, 6th March 2014. Palm oil futures made another new high yesterday when the May contract reached 2,868 level, with no sign of stopping yet. Other news to follow.

"-The U.S. stock market finished a choppy trading day on Wednesday generally lower with blue-chips falling the most, as investors reacted mildly to mostly disappointing economic reports. The main indexes traded in a narrow range after a big rally on Tuesday which sent the S&P 500 and the Russell 2000 to record levels. The S&P 500 SPX -0.01%  finished roughly where it closed on Tuesday, down less than a point at 1,873.81 with the energy sector hit the most. The Dow Jones Industrial AverageDJIA -0.22%  dropped 35.70 points, or 0.2%, to 16,360.18. The Nasdaq CompositeCOMP +0.14%  closed in positive territory, gaining 6 points, or 0.1%, to 4,357.97, the highest level since April 2000."

"-Asian markets were mixed on Tuesday, though stocks in Japan and Hong Kong picked themselves up from a selloff in the previous session sparked by concerns over the situation in Ukraine. Hong Kong’s Hang Seng Index, one of the worst-hit markets in Asia on Monday, added 0.4% -- as the index picked itself up from a 1.5% decline in the previous session. Other regional markets to recover included Singapore’s Straits Times Index, which was up 0.3%, while Australia’s S&P/ASX 200 added 0.3%. Another sign of easing tension in the market was a softer yen--a safe-haven asset that is typical bought in times of turmoil. The dollar moved higher to ¥101.64 in Asian trade, compared with ¥101.44 late Monday in New York. Stocks in Tokyo responded well to the weaker currency, helping the Nikkei Stock Average rise 0.2%, after falling 1.3% in the previous session. Elsewhere in the region, South Korea’s Kospi slipped 0.4% and the Shanghai Composite Index lost 0.8%, as Chinese coal miners fell after local media said that Shenhua Group cut its product prices again. Coal companies that lost ground included Kailuan Energy Chemical, which lost 2.4% and Yanzhou Coal Mining, which was 2.2% lower."
"-Oil futures on Wednesday settled under $102 a barrel, at their lowest level in almost three weeks, pressured by a surprise climb in weekly U.S. distillate inventories and concerns over the potential for a slowdown in energy demand. Analysts also attributed Wednesday’s slip to bets that Russia-Ukraine tensions will continue to ease. Crude oil for April delivery CLJ4 -0.43%  fell $1.88, or 1.8%, to settle at $101.45 a barrel on the New York Mercantile Exchange, the lowest closing level since Valentine’s Day, after tapping a low of $101.16 during the session."

FCPO- "I Hope Price Would Retrace For Me To Long."

Hope is a dangerous element to have in trading. Hope that lies in any financial traders are some expensive tool to have because when something got wrong and equity balance starting to diminish, that trader would hope the price does come back for him to break even. Ditch any "hope" when you are trading, and I vouch you can do 100% better than you used to be. These changes will eventually display in your trading performance and financial results gradually. Palm oil price action is still signifying positive progression, making new highs and recover steadily after it went down for some intraday retracement. As most intraday traders will agree price always jittery even after it hit certain new high, these conditions are normal. Price will swiftly "auto balance" as it hit new high or new low as most stop order will be triggered and there is also more traders that wish to enter and exit the market at the same time. Long term outlook still remain Bullish on both technical and fundamental side. Recent drought weather condition likely slow down output while stockpiles recovery are still in check. Long term wise, the benchmark May have to break down below the support trend line in order to temporarily change the current Bullish trend to retracement phase. Conclusion, Bulls are still running rampantly and if you are still holding Short position, be wary as you might be stampede alive. For today, pivot support for May contract is located around 2,841 while resistance is pegged at 2,884.

Daily Pivot Point
R2= 2884
R1= 2858
S1= 2841
S2= 2798
 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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