Thursday, 18th Sept 2014. Palm oil futures is building positive momentum this week amid some cheerful news on export and promising recovery on Soy oil. Other news to follow.
"The U.S. stock market closed slightly higher Wednesday, with the Dow Jones Industrial Average reaching a record high. The main benchmarks swung higher after the Fed meeting and Fed Chairwoman Janet Yellen’s news conference but trimmed gains by the end of the session. In the end, the Federal Reserve stuck to its view that it will keep short-term interest rates near zero for a “considerable time” after the central bank ends large-scale purchases of bonds meant to stimulate the U.S. economy. The S&P 500 SPX, +0.13% rose 2.59 points, or 0.1 to 2.001.57. The Dow Jones Industrial Average DJIA, +0.15% added 24.88 points, or 0.2% to 17,156.85. The Nasdaq Composite COMP, +0.21% gained 9.43 points, or 0.2%, to 4,562.19."
"-Hong Kong stocks bounced back Wednesday, breaking an eight-day losing streak, after China’s central bank reportedly pumped tens of billions of dollars into the banking system to spur economic growth in China amid a worse-than-expected slowdown. Hong Kong’s Hang Seng Index HSI, +1.00% rebounded 1%, recouping some losses after having registered a roughly 4.7% loss over the eight previous sessions."
"-U.S. oil inventories rose 3.7 million barrels in the week ended Sept. 12, the Energy Information Administration said Wednesday. That contrasted with expectations of a decline by 400,000 barrels, according to analysts polled by Platts. Gasoline supplies were down 1.6 million barrels, while distillates supplies rose 300,000 barrels, the EIA said. Gasoline stocks were seen down 300,000 barrels, and distillate stocks were expected to end the week unchanged. Oil for October delivery CLV4, -0.49% was recently trading at $93.95 a barrel on the New York Mercantile Exchange, from around $94.24 a barrel as the report was released."
FCPO- Still Have A Lot Of Work To Do.
The Bulls might won some battle this week when the price was able to stay above 2,100 but long term still suggest this rally would not outlast Bears. We are likely to expect palm oil futures to recovery further with 2,200 psychological resistance in mind. Part of the these rally were strengthen by Soy oil recovery above 33.00 cents per pound so far and palm oil 1-15th Sept vs Aug 2014 export also saw a significant recovery, export was up about 40%. Unfortunately, the hard truth was export need to stay positive substantially so that it can gradually reduce record high stocks level, which turn out no so soon. On technical side, there were obvious formation of higher highs and higher lows, and other few good signs for impending price recovery for the Sept month. The next untold answer would be where does this rally would end, frankly no one know "for sure." It is not a duty for a trader to "know" where does this or that rally end, but it is every traders job and duty to due diligently carry out their trades based on the plan or system layout. Risk management plays a big chunk whether the trades would make it or otherwise, imagine if a certain trader could manage his positions well based on his risk system. For today, the new benchmark Dec is likely open higher amid higher closing value on Soy oil futures. Pivot support for Dec is located around 2,112 while resistance is pegged at 2,177.
Daily Pivot Point
R2= 2177
R1= 2158
S1= 2112
S2= 2085
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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