Friday 30 March 2012

Morning Update - FCPO - 30 March 2012

Ok here is the second part of the morning update on FCPO.

Firstly, we look at the 4 grains futures that we are tracking currently.

The closing prices are:

Soybean Oil Future 53.59 down from 54.60
Soybean Futures 1355.6 down from 1367.40
Wheat Futures 612.6 down from 630.80
Corn Futures 604 down from 620.20

Wow.. as the chart have shown yesterday, Wheat and Corn Futures really was bearish and came down a lot. This has pulled the priced of Soybean Oil and Soybean Futures down too.

Although Soybean Oil and Soybean Futures have pulled back a bit of the deficit, it looks like a dead cat bounce on the hourly chart and not any significant recovery. Wheat and Corn futures are still trading at the lower range of the close.

Expect our FCPO to open lower again today.






What to expect for our FCPO today:

I think the sellers will take this opportunity pile on the selling momentum and buyers to take their profit.

The possible support areas are as per below:

Support: 3436, 3419 and 3393.

For daily scalpers, I would be more inclined to trade along with the momentum of the current force in the market which is the sell side. But if you are looking to go long, look for areas of support and wait to see if these areas are holding well. If the support areas are holding well, set a buy stop just outside the range area and when it breaks up, the buying momentum will hit your buy stop along in its push up. Be prepared to take quick profits though. 

Perhaps after this pullback we will resume the uptrend again in the coming weeks. We will let price action do the talking.

Trade safe all. I will update again here or the side bar on the right if there are any significant changes to the market.

Best Regards,
Tech Trader




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