Wednesday, February 11, 2015

FCPO: 2,400 Level Export Tax Curb Palm Oil Recovery 11th Feb 2015

Wednesday, 11th Feb 2015. Palm oil futures is still playing its little upward and downward swing, in a good way I presume. Other news to follow.

"- U.S. stocks rallied at the end the day Tuesday, sending the benchmark S&P 500 to its highest close this year, during what was another characteristically volatile day for equities. Investor optimism was fueled by hopes that embattled Greece and its creditors are nearing a compromise to avert a default, even though both sides continued to reiterate statements that suggests an accord is far from imminent. Earlier in the trading session, European and U.S. equities got a boost after news reports offered hope that the European Commission was considering a six-month debt extension. However, investors remained optimistic even though rumors of an extension were dismissed by Germany’s finance minister Wolfgang Schäuble. The S&P 500 SPX, +1.07%  closed 21.84 points, or 1.1%, higher at 2,068.58 and turned positive for the year. Nine of the 10 main sectors finished higher, while energy-sector stocks ended with modest losses, following a drop in oil prices. The Dow Jones Industrial Average DJIA, +0.79%  jumped 139.55 points, or 0.8%, to 17,868.76, with 26 of its 30 member ending with gains. The Nasdaq Composite COMP, +1.30%  added 61.63 points, or 1.3%, to 4,787.64, helped by a big gain in Apple, Inc., the heaviest-weighted component in the tech-laden index."

"- Hong Kong stocks saw their earlier losses melt away and closed marginally higher at the close of Tuesday’s trading. Data showing China’s consumer-price inflation at its lowest in five years, was balanced by news that the Chinese central bank had injected liquidity into the markets helping the sentiment. The Hang Seng Index HSI, -0.06%  ended in positive territory, up less than 0.1%."
"-Crude-oil futures fell more than 5% Tuesday to their lowest settlement level in nearly a week as concerns about a persistent supply glut resurfaced ahead of weekly U.S. inventory updates. Light, sweet crude futures for delivery in March CLH5, +1.48%  on the New York Mercantile Exchange fell $2.84, or 5.4%, to settle at $50.02 a barrel. That was the lowest settlement level since Feb. 4."

FCPO- Bulls Have To Wait Longer

Palm oil futures would be running its course of direction downwards for the moment, after some Bearish candle formation appeared yesterday. The lower high and lower low candle formation formed on hourly chart is early sign that April contract may suffer higher downside risk. Most of the Sellers manage to overcome Buying interest when the price made it to 2,342 yesterday. It was a brief rally and turn out to be profit taking activities right after the April contract hit 2,342 level. The long Bearish solid candle signifies there was a lot of Selling pressure right after the market resume on 3pm yesterday and all the way to 4pm. It is a sign that the palm oil futures is likely to go down, but not a definitely it would go down for sure. No one can tell for sure what is going to happen on the next 30 secs, nevermind the next day. Discipline and pro-active risk management is what seperated the novice and informed trader. The novices always think about when and where they can hit the jackpot while an informed trader would always think about how to protect themself each time the positions are entered. If you heard about the old race between tortoise and hare, the odds were against the tortoise but in the end it was the tortoise who won the race. Trading futures or any financial market is a journey, and it will be a long journey to get wise. For today, pivot support for April contract is located around 2,262 while resistance is pegged at 2,331.

Daily Pivot Point
R2= 2362
R1= 2331
S1= 2281
S2= 2262
 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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