Friday, July 7, 2017

5th July 2017: FCPO Market Commentary

4th July 2017: Soy Oil Aug Traded At 33.17 cents, On-Sho
re Ringgit Traded Unchanged @ RM4.2980 Per USD.

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I find the velocity of market news flowing is so complex and mis-leading at most point of the time. Unless you are taking news from the reliable source, chances are you are reading the wrong news. Everyone has their own opinion about using the news, but when some people claim that price flow mostly due to news is tough to agree on. Price movement on any market can be due to anything, it could be technical, rumors, facts, weather and so on. If you are just trading in short term, news is mostly irrelevant for you. We cannot pinpoint one element and use it as a major reference as every element in the market is co-relevant at some point. A very short term trader, i.e intraday trader would only use price to make their move on the market, while a longer term trend trader might want to incorporate weather and some fundamental data into his technical analyst before making any trades. The point is, those analyst can write anything they want after the price has move, you just have to pick and choose which source of news you can rely on making your decision. Palm oil futures for Sept contract is showing good sign of further recovery. As you can see on daily chart, the Sept contract has breached above the resistance trend line for the 2nd time and stay above 2,500 level yesterday. There is a small U shape pattern formed on daily chart as well if you look closely but the Sept contract still need to go above 2,520 level before it can change current negative momentum to positive momentum, hopefully soon. For today, palm oil futures for Sept contract is likely moving this range, 2,490 ~ 2,530.    

 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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