Wednesday, 28 August 2013

Daily Market Updates - FCPO, Soybean Oil, Soybean Futures 28th August 2013

Dear Traders,

The main Online trading website is having hosting server issues. I am looking to change my hosting services after this.

So I will post the daily market updates here instead today.

Here are the updates for today. We will dive into the grains futures first before going into FCPO.

Soybean Oil - /ZL

Soybean closed yesterday down but bounce back again to about the same level as yesterday morning and is now trading at $44.68, which is just above the $44.40 major support. There should be well supported areas all the way from this major support of $44.40 all the way to $43.60 so this should good news for longs in the market. My Short Term strategy is still long but it is just SLIGHTLY above neutral. As this short term strategy is very dynamic, it can change during the course of the trading day. For example, if FCPO is strong during trading, it may pull the point value of this short term strategy as it covers most of the major grains product. My Long Term Strategy has increased further in the LONG direction. I will maintain a LONG call at SUPPORT for this product, but do take note of the resistance above at $45.50 and $46.00.

Soybean - /ZS

Soybean’s price also behaved like its oil counterpart and close down for yesterday but opened higher when trading resumed. It is now trading at $1386 which is just under the $1388 resistance I have identified on Monday despite making a new high of $1409.50 last night. Soybean remains one of the strongest grains currently and if not for this major resistance, I’m sure it will go up further. So, until this $1388 level is overcome conclusively, then we will have to respect that level accordingly as it is a MAJOR resistance. IF it is able to break this level in the coming days, I’m thinking another $50-$80 point further is a possibility. The key word is IF, so we need to watch this resistance level closely. There will be support at $1365 to $1350 and at $1335.

FCPO

Yesterday, FCPO opened at above the RM2435 resistance and went on to test the RM2470 resistance that I have identified in the last two letters making a high of RM2468. Although my direction call has been right, I have been finding it difficult to find the right entry to enter into the market for day trading. However for those who held the position overnight, you should have some nice change in your pockets. For me it is pretty much the same for today. My Short Term strategy still remains on the LONG side while my Long Term Strategy has also turned LONG. So I will want to be position on the long side also. But what I will NOT do is to go long at RESISTANCE which is towards the area of RM2470. Although doing this may cause me to miss some trades, but I am calmer like this for not taking unnecessary risk for the portfolio. I would rather take high probability trades that give me maximum returns at lower risk. So for today, I will want to still be position to the long side, but only look to buy at SUPPORT. Should price trade too close to resistance of RM2470, then I may just wait for price to pull back then decide again. In fact, this RM2470 is such a crucial level that, if price can break this level, we may be looking at the good ol’ days for CPO again.

I will update again should there be any major changes later.

Please ignore grammatical errors..

For now, trade safe and make some money.
 
Best Wishes,
Tech Trader

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