FCPO: Still Running On Positive Note 26th Jun 2014

Thursday, 26th Jun 2014. Palm oil futures for Sept contract break the 2,500 silence easily and rose up to 2,511 level but ended slightly short at 2,482 level. Other news to follow.

"- U.S. stocks finished higher Wednesday, recovering from a weak revision of first-quarter economic performance, as media stocks got a lift from a Supreme Court ruling and refinery stocks wobbled on a weakening of an oil export ban. The S&P 500 SPX +0.49% rose 9.55 points, or 0.5%, to end at 1,959.53, according to preliminary FactSet data. The Dow Jones Industrial Average DJIA +0.29% gained 49.38 points, or 0.3%, to finish at 16,867.51. The Nasdaq Composite COMP +0.68% climbed 29.40 points, or 0.7%, to close at 4,379.76. The S&P 500 and Dow both snapped two-day skids, but remain down for the week after closing at record levels on Friday."

 "-HONG KONG (MarketWatch) — Asian stocks ended mostly higher on Tuesday, and Japan’s Nikkei Average nudged higher to hit another five-month high. Investors were waiting for Japanese Prime Minister Shinzo Abe to unveil a package of economic reforms, known as the “third arrow” of Abenomics, after the market close. In the meantime, Japan’s Nikkei Average JP:NIK +0.17%   rose for a second straight day, edging up 0.1% to its highest settlement in five months. The broader Topix indexJP:I0000 +0.17%   also inched 0.1% higher. The yen USDJPY -0.13%   softened against the dollar, trading at ¥101.952 from ¥101.905 in the prior session. Hong Kong and Shanghai stocks recovered losses from Monday, with the Hang Seng Index HK:HSI -0.06%   and the Shanghai Composite Index CN:SHCOMP -0.41%   up 0.3% and 0.5% respectively. South Korea’s Kospi index KR:SEU +0.58%   gained 1%. However, Australia’s S&P/ASX 200 AU:XJO +0.52%   fell 0.4%, weighed by banking stocks.""-

"- Oil futures climbed on Wednesday, with the U.S. benchmark logging the first gain in three sessions after the Obama administration loosened a ban on crude exports. Prices saw some pressure during the session after government data early Wednesday showed U.S. durable goods fell by 1% in May and the economy shrank more than previously expected in the first quarter, while U.S. crude inventories rose last week. Crude oil for August delivery CLQ4 +0.14%  climbed 47 cents, or 0.4%, to settle at $106.50 a barrel on the New York Mercantile Exchange after tapping a high of $107.50 in electronic trading overnight. Just ahead of the government supply data, the contract was at $105.85."

FCPO- Bulls Are Still Controlling The Game

Yes, that is correct, the Bulls are still hanging around in the market even though we saw some profit taking activities towards the closing bell yesterday. Nothing the freak the Long holder out yet as last hour market retrace in an uptrend market is deem normal condition. Short term trader that Longed might take some of the profit out when the market hit 2,500 barrier yesterday, a level that most Long positions holders would take their profit. We should be looking at further market retracement if the benchmark Sept does go down below 2,461 level this week. If that event does not materialize, Long setup is still good to take on. The good side is, the 1-25th Jun vs May 2014 export figure was reported slightly better with 3% rose by ITS surveyor. Palm oil price should be supported by dry weather season too for the moment and steady soy oil price likely help cushion any steep retracement as well. Technically, the benchmark Sept first support trend line will be shown on hourly chart above. Do not get freak out if the Sept contract does fall below this support trend line around 2,478 as we are likely expect it to rebound back to recovery after that. It would be a minor pullback, which is healthy in any uptrend but things might get a bit uglier if the last support line at 2,461 would be taken out as well. Conservative traders might want to place their Long order around 2,465~68, stop loss around 2,455 level and expect 15~20 points gain from your entry level. For this week, pivot support for Sept contract is located around 2,461 while resistance is pegged around 2,501.

Daily Pivot Point
R2= 2521
R1= 2501
S1= 2471
S2= 2461
 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.