Tuesday, April 22, 2014

Sideways To Bearish Price Action 15th April 2014

Tueesday, 15th April 2014. Palm oil futures had a sudden sell-off on yesterday late afternoon session, a flash selling that unlikely to be profit taking. Other news to follow.

Regional Equity News
"- U.S. stocks ended higher Monday, reclaiming some of the previous week's sharp losses after a stronger-than-expected rise in March retail sales and Citigroup's quarterly results. Trade was choppy in late activity, with the NasdaqComposite COMP +0.57% dipping into the red before finishing higher and other indexes temporarily trimming gains. The Dow Jones Industrial Average DJIA +0.91% ended with a gain of 146.49 points, or 0.9%, at 16,173.24, while the S&P 500 SPX +0.82% rose 14.92 points, or 0.8%, to 1,830.61. The Nasdaq Composite gained 22.96 points, or 0.6%, to 4,022.69. "

"-Japanese stocks stabilized Monday after heavy selling last week, while markets in Australia and Shanghai moved lower in a mixed session for Asia.

The Nikkei was flat and the yen was a touch higher at ¥101.54 to the dollar, compared with ¥101.62 late Friday in New York. Last week, the Nikkei suffered its worst week in three years, as investors questioned the viability of the country’s economic recovery. Its 7.3% decline was triggered by some of its largest constituents--such as Fast Retailing Co. Ltd., which sank 7.9% on Friday. Australia’s S&P ASX 200 lost 0.4%, South Korea’s Kospi was less than 0.1% lower, and the Philippines PSE was down 0.2%. Singapore was in positive territory, with stocks 0.6% higher after an announcement that first quarter gross domestic product climbed 5.1% from a year earlier."

FCPO- Still Within 100 Points Range.

Anything can happen in a trending and sideways market, this include flash selling minutes before a closing session. Much of the selling pressure that took the price from 2,650 to 2,621 for the June contract remain a question market why it does that. Whatever reasons you can think of, yesterday session ended in neutral form as the price closed at the level where it open on morning yesterday. A neutral closing value are likely signifies uncertain sentiment in the market. Majority of the trader still picking which news and price action to weight more. Fundamental sentiment was Bearish one when MPOB announce negative export data plus rising inventory. While palm oil futures price recovery is curbed by bad news, market has recovered slightly on yesterday session, maybe due to oversold pressure. Back to technical outlook, the benchmark June is still moving sideways within 2,671 to 2,570 level. For a new trend discovery (at least for medium term), the June contract must breach above or below away from those range. You are not likely find any promising trend within this 100 points range for the moment. For today, we are likely to see higher opening value judging from Soy oil futures recovery to 42.25 per pound, as the time of writing today. Pivot support is located around 2,604 while resistance is pegged at 2,651 followed by 2,681.

Daily Pivot Point
R2= 2681
R1= 2651
S1= 2604
S2= 2587
 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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