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.
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Showing posts with label sell-stop levels. Show all posts
Showing posts with label sell-stop levels. Show all posts
Friday, June 29, 2007
Kuala Lumpur Stock Market Outlook : Forecast for the day, 29th June 2007 !
KUALA LUMPUR STOCK MARKET OUTLOOK: Forecast for Friday, June 29, 2007: KLCI can fall further if 1348 breaks down but any rebound can ‘save’ the market from a downtrend. Watch!
Technically speaking:
1. As at Thursday’s close at 1350.72 the KLCI was lower by 6.71 points or 0.49%. Losers led gainers 511 to 393. Trading volume was 1.0 bln shares.
2. The local bourse was under selling pressure alright with stocks like BAT, IJM, KLK, IOICORP, BURSA, ASTRO, HLFG, SIME and COMMERZ weighing down on the KLCI.
3. Stocks are weak, and many of our stocks have triggered sell signals, like MRCB, EMICO, ENCORP, AIRASIA, ATIS, FABER, KUB, PBBANK-CA.
4. They are sold out as they have hit our sell-stop levels.
5. Right now, with the KLCI at the brink of falling below the lower Bollinger band, we would rather be safe and reduce positions by selling out those that have hit our stops.
6. But if the KLCI does not fall below 1348, the lower Bollinger band, but instead stage a rebound today, we may have to r-enter some stocks that we have sold out.
7. But as of yesterday’s close, we would classify this market of ours as weak.
8. Today we would wait-and-see, and stay out of the market.
9. There is no stock to watch.
10. The ringgit strengthened back from 3.4810 to 3.4650 for a gain of 160 pips. This could be a hint of a stock market rebound today.
CONCLUSION: The Dow rebounded 90.07 points, yet we lost 6.71 points or 0.49%. What is going on? It would seem that nothing works for the Malaysian market, regardless of how the Dow performed. What a disappointment. We hope to see a rebound today as any fall below 1348, the lower Bollinger band support may result in lower lows. Note that the RSI, stochastic and MACD indicators are already on sell signal.
Long-term Upside Targets:1492 (Target amended on 15/6/07).
Immediate downside targets: 1319/1291/1222
To get the daily KL Stock Market Outlook, subscribe to our daily stock and futures newsletter at http://www.picapital.com.my/
Technically speaking:
1. As at Thursday’s close at 1350.72 the KLCI was lower by 6.71 points or 0.49%. Losers led gainers 511 to 393. Trading volume was 1.0 bln shares.
2. The local bourse was under selling pressure alright with stocks like BAT, IJM, KLK, IOICORP, BURSA, ASTRO, HLFG, SIME and COMMERZ weighing down on the KLCI.
3. Stocks are weak, and many of our stocks have triggered sell signals, like MRCB, EMICO, ENCORP, AIRASIA, ATIS, FABER, KUB, PBBANK-CA.
4. They are sold out as they have hit our sell-stop levels.
5. Right now, with the KLCI at the brink of falling below the lower Bollinger band, we would rather be safe and reduce positions by selling out those that have hit our stops.
6. But if the KLCI does not fall below 1348, the lower Bollinger band, but instead stage a rebound today, we may have to r-enter some stocks that we have sold out.
7. But as of yesterday’s close, we would classify this market of ours as weak.
8. Today we would wait-and-see, and stay out of the market.
9. There is no stock to watch.
10. The ringgit strengthened back from 3.4810 to 3.4650 for a gain of 160 pips. This could be a hint of a stock market rebound today.
CONCLUSION: The Dow rebounded 90.07 points, yet we lost 6.71 points or 0.49%. What is going on? It would seem that nothing works for the Malaysian market, regardless of how the Dow performed. What a disappointment. We hope to see a rebound today as any fall below 1348, the lower Bollinger band support may result in lower lows. Note that the RSI, stochastic and MACD indicators are already on sell signal.
Long-term Upside Targets:1492 (Target amended on 15/6/07).
Immediate downside targets: 1319/1291/1222
To get the daily KL Stock Market Outlook, subscribe to our daily stock and futures newsletter at http://www.picapital.com.my/
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