Tuesday, 7 April 2014. The benchmark June traveled back to sideways price action, forming lower high and lower low on lower time frame to be precise. Other news to follow.
"-The U.S. stock market fell sharply on Monday as heavy selling in high-growth stocks, which began on Friday, continued to spill over the broader market. The Nasdaq Composite fell 47.97 points, or 1.2%, to 4,079.75, falling below its 100-day moving average. The tech-heavy index lost 4.7% over the past three sessions, the steepest three-day loss since November 2011. S&P 500 SPX -1.08% ended the day 20.05 points, or 1.1%, lower at 1,845.04, falling below a key technical level of 1,850 and erasing year-to-date gains. The Dow Jones Industrial Average DJIA -1.02% dropped 166.84 points, or 1.3%, to 16,245.87."
"-Technology stocks dropped in Asia on Monday, adding force to a global rout in the sector.
FCPO: Pending Upside
There is just not enough juice yet to push up the price for the past two sessions since last Friday as Soy oil did not give much support for further upside. Curb by demand concern on both palm oil and Soy oil, both commodities did not record any sustain price recovery so far. Most of the price rally we saw so far were short lived. These negative price movement might caused by slow growth on the demand side, as palm oil export data was reported lack luster for March vs Feb 2014 session. If you have to ask, what can we achieve or benefit when there is still yet any promising medium term trend. Trader can choose to trade intraday by zooming into lower time frame starting on 15 minutes to 5 minutes chart. Zooming in to lower time frame chart allows you to look at most recent price action and act on it. Just like how you re-acted on hourly or daily time frame chart, trading on lower time frame would not be much different at all. The condition that might change when switching to trade on shorter time frame would the duration you would hold your position and profit and losses objective will be alter as well. Focusing to make just a fraction of the price action, short term trader have to have "hawk" senses when it come to execute trades. Both entry and exits of each and every trades will have to be due diligently executed, of course without prejudice. Back to palm oil outlook for longer time frame, words out that palm oil inventory or stockpiles might fall 3.6% based on survey conducted by Bloomberg. Now, the only way stockpiles could reduce is by improving demand, that would mean the upcoming export data is likely to be positive. Judging by that alone, trader should pay attention when the June contract rally above 2,670 level as it is likely signifies upside resume. If the market does not pay any heed to this news, immediate support is located around 2,610 followed by 2,600 level if anything should go wrong.
Daily Pivot Point
R2= 2684
R1= 2653
S1= 2601
S2= 2580
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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