Alright here are the daily summary.
FKLI
30 Mins Chart
Wow what a choppy day today.
We traded to the following levels today:
FKLI April Contract
Opened 1602.00 from 1597.50 the previous day
High 1606.05
Low 1601.5
Close 1603.00
In the morning, we believed that today would be a choppy range trading to a slightly upside biased day and we were right.
Price opened and tested 1602 before going up to test the high of 1606.50 which was one tick away from our first level of resistance.
Then we traded back down to 03-04 level for a period of time. When it was clear that the support would hold, long scalpers could have entered here for the price to retest the resistance level again.
After not being able to close above 06.50, price started to trade down from here. Ok here was a chance for short scalpers to enter the market as resistance seems to be holding. However, if you had entered a short near the high without waiting for a confirmation, it would be a bit riskier. I would have preferred to short at lower by using a sell stop and let it catch my entry on the way down.
Then price traded slowly at 03-04 before finally breaking down to 01.50 which was the previous day's highs.
When lunch opened, the support seemed to hold and early longs who are willing to take on more risk could have entered a long limit entry at about 02.50 and rode this up to test the high of the range. By taking more risk, they are also being awarded with higher profits if they are right in their judgement plus their stop would be smaller i.e in this case, maybe a stop at 01. I would have preferred a buy stop order near 04 as a lower risk entry as price would catch my order on the way up. The draw back for this are that my profits are smaller and my stop might be caught sometimes by the pullbacks.
As a trader, you would need to weight your risk vs reward carefully and decide which kind of strategy you would employ during each trade as each type of entry carries with it different type of risk vs reward.
So after lunch, we went back up to test the highs again, wouldn't break and came down to close at 03. So as you can see, there was a market for both the long and short traders today. We already expected it to be a range trading session with a slightly upside biased view so we should not be caught making the mistake of buying near the top of the range or selling near the bottom of the range. Trading the breakout of the range is ok if there is sufficient strength in the breaking out of the range.
Ok FCPO next
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FCPO
Ok interesting development in the FCPO contract!
We traded to the following prices today.
Open 3566 from previous close of 3532
High 3566
Low 3532
Close 3532
Whew! Yesterday's closing price and today's closing price was the same! What's more, we gap up in the morning and we did a full gap fill today. Refer to the chart below:
What's more, the Daily Chart is making an interesting Candle Pattern known as Bearish Deaisen or known as Meeting Lines.
Candle stick proponents believe that this candle pattern is a highly reliable reversal signal. This pattern is also known as a Gyakushu (Counter Attack Lines) in Japanese.
The features of this candle pattern are as per below:
"A bullish candle at the top of an uptrend is followed by a gap up the next day. The opening price at the gap should be a full range above the previous day but the trend is downward in a Shaven Opening (Bearish Marubozu) Candle. The main body of both candles should be of equal strength. The closing price of both candles are almost of the same level".
Kindly refer to the daily chart below for the pattern formation.
So it remains to be seen what would happen tomorrow.
Perhaps finally we will fill the 75 points gap from the previous day in the coming few days? Or will we push to higher highs?
It all depends on a few factors including how the other grains product are performing in the night market tonight. I will update on these market tomorrow morning.
In any case, if price wants to push up further, perhaps a pullback before the next leg up is not out of possibility. So.. I will update on the overseas market and the levels tomorrow morning lah.
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Ok.. so I'm gonna leave the office now.. wishing all of you traders out there a great evening and see you all tomorrow! Ciao!
Best Regards,
Tech Trader.
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