Friday, August 26, 2016

FCPO Commentary 24 Aug 2016

If you came down and record price action, previous high or immediate resistance level is a reliable area to take a calculated Short setup with nice risk and reward with it. The ratio if you are able to Short around 2,620 level, chances are you are likely risking somewhere 10 points and target a 20 points return. It is a nice setup to follow but how many of us dare to execute this setup when the price approach that immediate high. Again, we had only our mind and personality to blame, but it is okay as long as you take note and learn some lesson from that setup. Usually, taking an opposite position when the market is hitting the immediate high or go Long when the price is coming to immediate low are generic strategies to use in ranging market. Yes, I still believe palm oil futures is still ranging, maybe more to positive side but I am not putting my money overnight. Intraday positions should stay intraday the most, moving an intraday positions overnight is death wish, especially when you are holding a losing positions. Another thing to take note would be, try not to over-trade, a minimal margin for each lot should be at least RM6,000 even for an intraday position. I know all of us wish to be right at the maximum load and make tons of money, but know this, no one has ever got that lucky in my record yet. All of those who over-trade usually end up watching their equity vaporize so quickly they refuse to believe it. Trading using the right allocated fund lets you feel the market with better clarity, there is no rush to get good in this business but everyone just want to be success in the fastest time possible. We need time to improve, even the best in this business still have their bad day to begin with. Palm oil futures for Nov is likely trap within the range shown on hourly chart above, with a little bias to the upside. Most of the sentiment so far remain Bullish with palm oil supplies seems going lower due to improving demand. Like it or not, palm oil futures is likely tracking soy oil futures positive momentum for some extended of time. Today, range for Nov contract is likely open lower on soy oil recent retracement. The Bulls on soy oil is starting to take a breather, heading down about 0.35 cents to 33.60 cents this morning, but this may turn out to be a temporary condition. Overall chart reading on daily time frame still suggest soy oil Dec is still travelling on Bullish momentum. Range for Nov today is likely moving within 2,570 ~ 2,620. 

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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