Tuesday, May 20, 2014

FCPO: Its A Grueling Time 20th May 2014

Tuesday, 20th May 2014, Palm oil futures ended lower for another session yesterday amid recent uncertainties over the export expectation for month of May plus Soy oil price was declining. Other news to follow.

" U.S. stocks ended Monday modestly higher with small-cap and tech companies leading the gains. Shares in Apple Inc. AAPL -0.10% , the heaviest weighted stock on the S&P 500 and the Nasdaq Composite, gained 1.2% to $604.59. Gains were muted in light of mixed deal news. AT&T T -0.11% agreed to buy DirecTV, but AstraZeneca AZN +0.72% rejected a $120 billion bid by Pfizer Inc. PFE +0.31% . Trading volumes on Wall Street were light and analysts noted that absence of 'bad news' sent stocks higher. The Nasdaq Composite COMP +0.86%closed 35.23 points, or 0.9%, higher at 4,125.82. The benchmark S&P 500 SPX +0.38%added 7.22 points, or 0.4%, to 1,885.08. Dow Jones Industrial Average DJIA +0.13% rose 20.55 points, or 0.1%, to 16,511.86. "

"-Indian stocks closed at a record high Friday, as the anticipation over the next government propelled the Sensex higher, while Japanese stocks were weighed by a stronger yen and more poor corporate earnings. The S&P BSE Sensex IN:1 +1.00%  jumped as much as 6.2%, hitting a record 25,375.63, but gave up most of those gains to end at 24,121.74 points, up 0.9%, as investors booked profits at the end of a strong week that has boosted the index by 5% since May 9. Hong Kong’s Hang Seng Index HK:HSI +0.24%  was down less than 0.1% to 22,712.91 and the Shanghai Composite CN:SHCOMP -1.05%  was up less than 0.1% at 2,026.50."

"- Gold prices settled with a slight gain on Monday, finding some support from weakness in the U.S. dollar but failing to reclaim the $1,300 level as investors looked ahead to speeches from Federal Reserve officials and minutes from the central bank this week. Gold for June delivery GCM4 -0.02% edged up by 40 cents to settle at $1,293.80 an ounce on the Comex division of the New York Mercantile Exchange, after tapping a high of $1,305.70 in electronic trading. Prices, which haven’t closed above $1,300 since Wednesday, lost a total of roughly 0.9% on Thursday and Friday."

FCPO- Weakness Prevail

The waiting time is over as palm oil August closing at the low of the day, this swift downside shout out stern warning for Long holder in palm oil futures. To recap, it is a tough time for everyone that traded in FCPO futures, be it the short term or long term trader. Price is still congested within for few weeks and maybe we will be fortunately enough to see a promising downtrend this week. Palm oil futures reverse gear and dropped lower than previous support level at 2,550 level. It is a bad place to break the last support level at this moment. The benchmark August dropped below major support yesterday despite there was higher export number reported for the month of May. Maybe the market need more good news than the export number alone to force price to recover in the future. On paper, you are looking at major downtrend signal once the 2,550 support level has been taken out. This break down would gone so bad as it is a valid downside break out after the benchmark month has congested for a few weeks. Strong Selling pressure on yesterday closing bell also suggest Bears were dominating the entire afternoon session. For this week, previous support level 2,550 is likely turned into a resistance level. Traders who missed may want to load up Short positions around this area. Likely to travel lower, pivot support for August contract is located around 2,510 while resistance is pegged at 2,561.

Daily Pivot Point
R2= 2586
R1= 2561
S1= 2523
S2= 2510
 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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