Wednesday, January 28, 2015

FCPO: Weak Demand And In-active International On Edible Oil Transaction Curb Price 28th Jan 2015

Wednesday, 28th Jan 2015. Palm oil futures went down for another week since 15th Jan 2015 and never look back. The rejection on price 2,394 was a rather substantial and no one can tell for sure it would become this bad. Other news to follow.

"- U.S. stocks recorded their biggest decline in three weeks on Tuesday, following a surprise drop in durable-goods orders and disappointing earnings from Microsoft Corp. and Caterpillar Inc. The weak data stoked fears that economic growth is decelerating The S&P 500 SPX, -1.34%  closed down 27.53 points, or 1.3%, at 2,029.56, as Microsoft Corp. MSFT, -9.25%  and Caterpillar Inc. CAT, -7.18%  plunged to lead losses. The Dow Jones Industrial Average DJIA, -1.65%  dropped as much as 380 points, but closed down 291.49 points, or 1.7%, at 17,387.21. The Nasdaq Composite COMP, -1.89%  ended the day with a loss of 90.27 points, or 1.9%, at 4,681.50, as its largest component, Apple Inc. AAPL, -3.50% slid 3.5%."

"- Chinese stocks broke a five-day winning streak on Tuesday, as Hong Kong and Shanghai markets both pulled back amid concerns fueled by a drop in the profit growth at major Chinese industrial companies and a previous sharp fall for China’s yuan. At the same time, Japanese stocks advanced to one-month high, after Greek election results impacted global markets by less than expected Monday. Hong Kong’s Hang Seng Index HSI, -0.41%  retreated 0.4% to 24,897.28, after touching a four-month high in the previous close. Over on the mainland, the Shanghai Composite Index SHCOMP, -0.89%  fell 0.9% to 3,352.96, also pulling back from its best closing level in more than five years. The declines came after official data showing that profit at major Chinese industrial companies grew 3.3% year-on-year in 2014, down sharply from a 12.2% increase in 2013."
"-Crude-oil futures rose more than 2% on Tuesday, as some optimism about curtailing output seemed to permeate markets and ahead of a fresh weekly report on stockpiles. Light, sweet crude futures for delivery in March CLH5, -1.84%  rose $1.08, or 2.4%, to settle at $46.23 a barrel on the New York Mercantile Exchange. The settlement snapped a three-day losing streak. Prices had weaved in and out of the red earlier in the day, trading as low as $44.81 a barrel and as high as $46.55 a barrel."


FCPO- Still A Long Way To Go For Bulls To Regain Power


The benchmark April went down again and this time with some consolation prize. Instead of keep on going down the April contract did recover slightly yesterday from 2,151 level to 2,184 level on late afternoon session. This might be a good news for those who have Longed slightly below 2,200 level, and that is all the break you can get as Bearish tone in palm oil futures is yet subside. Today, palm oil futures is likely open lower amid recent weakness in Soy oil. The actively traded April contract on Soy oil dropped back to 30.87 cents per pound, which is likely giving negative opening to palm oil futures soon. Technically, lower lows and lower highs formed on hourly chart are the key sign for the market to go down two weeks ago. As a trader, these chart formations are very hard to ignore, and as a trend trader you better take action. It is simple for our eyes to see what happen in the chart, but most of us choose not to trust and act on it. That is a also a simple fact on why most traders failed, seasoned or new traders would go into the same loop of failure if they expect different results doing the same thing. The problem with our society was, smart people are full of doubt and foolish people are full of confidence. In case of trading business, smart people was too smart to act on the chart, smart people takes in news and whatever factor they can come up with, just another good reason for them to pull the trigger. For smart people, chart is too simple to begin with. It is a fatal mindset in trading business to think everyone act the same with similar information appear on the chart. Well, for foolish people, it is the direct opposite of smart people in the trading business. So, which kind of trader you would wished to be, a perfect compromised would be being smart and foolish at the right timing.
For today range, palm oil futures for April contract is likely hovering within 2,185 to 2,146 level.

Daily Pivot Point
R2= 2206
R1= 2195
S1= 2162
S2= 2140
 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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