Monday, October 5, 2015

FCPO: Calm Before The Storm

FCPO: Looked At How Far We Have Arrived



Palm oil futures had it most outrageous move ever since two years ago. The benchmark month is making serious range day after day starting at the mid of third quarter and now it might be showing some sign of slowing down, maybe. The benchmark month significant rally from 1863 level was an astonishing achievement for those who did not believe market can take form of any formation. No one can tell when is the market is going to peak nor whether it is recovering from a bottom, no one. One things that remain constant was, news will be Bearish when the price headed down for some time, and news will be very Bullish when the price has moved or recovered more than it should. The point is, there is always a lag between news and price. Very smart traders will use news to manage their positions. Well, mostly these types of traders do have strong opinion and we know what happen for those who have opinion and plan to stick with it. Deep pocket was part of the pre-requisite to have any opinion, ego and strong language came after that. I have high respect and jealous for those who have opinion in the market and their ability to withstand pain when the price goes against them. Back to the market outlook, there are some hesitation on the recent high after the Dec contract retrace slightly for some profit taking. It seems that the price is forming small triangular shape at current price. It is a concentrated price range waiting to be burst out. Judging from historical price action, two or more session that ended with hesitation at current high is likely mean the Bulls are likely giving up but there is also a fair chance that the Bears are not gaining any advantage over the Bulls either. In another words, it is likely that this hesitation will continue to extend its sideways price action unless the price break off new previous high or major support.

 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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