Wednesday, February 15, 2017

15th Feb 2017: FCPO Commentary

14th Feb 2017: Soy Oil Traded 0.06 Cents Lower, On-Shore Ringgit Traded Slightly Weaker @ RM4.4500
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When you try your best and you dont succeed, dont fred because you might just need to dig another inch to discover your gold. Just like the image above, success can never be easy to achieve and as easy as it seen, trading is an time consuming exercise to be good at. If trading is easy as advertise or if there is any results proven robot trading, most of the people in the world would have quit their job and just let that robot did all the work !! Trade #181 had to take some SL before the morning ends, it was a good call not to hold any position over the lunch. The Apr contract open 7 points lower from 3,035 to 3,028 and kept heading down to 3,024 before showing any sign to recover for the rest of afternoon session. I think most of the traders felt market is oversold or too good not to go Long when Apr price fell down below 3,014 level. Let us not forget that major support and resistance usually can be seen in the daily chart, is a strong pivot point for price to bounce up for Support and price to retrace down if it is a major resistance level. It is not in 100% certainty that price will re-act exactly at certain support or resistance level, but it likely on those area. For instance, I mentioned that on previous Monday that major Support is likely located at around 3,014 ~ 3,000 area, this is where the benchmark price likely to re-act if the major Support should hold. Do note that on yesterday, the Apr contract somehow dip to 3,011 level before it could recover all the way to 3,058 in the afternoon session. Now, lets take another scenario where the price re-acted differently on the Support area. Lets just say that, hypothetically the Apr contract went down slightly below 3,000 level, before it stop and start to recover 40 points from that low. Would my major Support area suggestion came out entirely wrong because price has went out of my boundaries ? What matters here would be setting an expectation and have the courage to find out what would the price do next, and if you are better than anyone else, you get the chances of making money out of it. For today, palm oil futures is likely open slightly lower due to soy oil weakness. The soy oil for March was traded 0.06 cents lower to 34.18 cents. Range for Apr contract likely moving within 3,020 ~ 3,070.



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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