Kuala Lumpur Crude palm oil futures: Stopped out/S.A.
SEPT CPO futures closed higher by RM49 at 2383 on relatively high volume of 6,956 lots.
1. We were stopped out of CPO yesterday at 2364.
2. Yesterday we had called to go long if 2364 is touched.
3. We are going long because the stochastic is on buy signal from near an oversold area.
4. Also, price has move up above the lower Bollinger band.
5. But strictly speaking, we should not go long as this market is prone to U-turn back down.
6. As such a conservative trader (and we) would rather stay aside instead of going long today.
If you are aggressive then you can turn long, but place sell-stop below day before
yesterday’s low, i.e. @ 2314 OL.
7. The next up target is 2560 and the next down target is 2153.
General commentary: We were whipped by the rebounding market yesterday and stopped out at 2364. It was a tricky market alright, hence our suggestion to stay out today.
Next upside targets: 2560/2749 (hit)/3313 (targets revised on June 5)
Downside support: 2153
Ichimoku chart: (Based on kumo (clouds), CPO is long. Kumo support is at 2111. Ichimoku chart will turn short @ 2110 OL (updated on June 11, 2007)
Average True Range for CPO: A.T.R. is 85.36 for CPO. This implies you need to put a stop above/below this A.T.R. or you can get stopped out due to the volatility factor. We advocate a 1.5 x or 2 x the ATR. We are using a 5 days ATR.
To get the daily KL Stock Crude Palm Oil Futures, subscribe to our daily stock and futures newsletter at http://www.picapital.com.my/
Showing posts with label Bollinger band. Show all posts
Showing posts with label Bollinger band. Show all posts
Friday, June 29, 2007
Kuala Lumpur Stock Index Futures Outlook : Forecast for 29th June 2007 !
Kuala Lumpur Stock index futures: Stop out/SA
June futures closed lower by 6.0 point at 1347.5 on relatively low volume of 8,992 lots.
1. We continue to stay out as price closed within the Bollinger bands.
2. But if FKLI can close below 1348 today we would turn short.
3. Otherwise, any close above 1348 could be a “buy”.
4. We know that July is already below 1348. July closed at 1339.
5. But it is possible for July to rise to cover the down-gap and close above 1348 today.
6. If you are a contrarian, you would be buying July at the open and place sell-stop at 1334 OL but do not short yet.
General commentary: The Dow rebounded by 90 points and the ringgit was up by 160 pips but FKLI did not rebound in tandem. What a disappointment. Let us see if we are just as anemic today. If FKLI closes below 1344.0 OL (June contract), then cut loss on longs. If you are trading July contract, the stop loss would be 1334.5 OL.
Upside Fibonacci target 1466(Revised on June 15)
Downside targets: 1294/1257/1212
Ichimoku chart: (Based on Kumo (clouds) FKLI is still long. Kumo support is at 1206. Ichimoku chart will turn short at 1205 OL) (Updated on June 11, 2007).
Average True Range for KLFE: A.T.R. is 15.61 points for FKLI futures. This implies you need to put a stop above/below this A.T.R. or you can get stopped out due to the volatility factor. We advocate a 1.5 x or 2 x the ATR. We are using a 5 days ATR.
To get the daily KL Stock Index Futures Outlook, subscribe to our daily stock and futures newsletter at http://www.picapital.com.my/
June futures closed lower by 6.0 point at 1347.5 on relatively low volume of 8,992 lots.
1. We continue to stay out as price closed within the Bollinger bands.
2. But if FKLI can close below 1348 today we would turn short.
3. Otherwise, any close above 1348 could be a “buy”.
4. We know that July is already below 1348. July closed at 1339.
5. But it is possible for July to rise to cover the down-gap and close above 1348 today.
6. If you are a contrarian, you would be buying July at the open and place sell-stop at 1334 OL but do not short yet.
General commentary: The Dow rebounded by 90 points and the ringgit was up by 160 pips but FKLI did not rebound in tandem. What a disappointment. Let us see if we are just as anemic today. If FKLI closes below 1344.0 OL (June contract), then cut loss on longs. If you are trading July contract, the stop loss would be 1334.5 OL.
Upside Fibonacci target 1466(Revised on June 15)
Downside targets: 1294/1257/1212
Ichimoku chart: (Based on Kumo (clouds) FKLI is still long. Kumo support is at 1206. Ichimoku chart will turn short at 1205 OL) (Updated on June 11, 2007).
Average True Range for KLFE: A.T.R. is 15.61 points for FKLI futures. This implies you need to put a stop above/below this A.T.R. or you can get stopped out due to the volatility factor. We advocate a 1.5 x or 2 x the ATR. We are using a 5 days ATR.
To get the daily KL Stock Index Futures Outlook, subscribe to our daily stock and futures newsletter at http://www.picapital.com.my/
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