FCPO, 19th January 2016

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Active month: April
Today Resistance: 1st) 2523 2nd) 2505 3rd) 2488
Pivot: 2477
Today Support: 1st) 2460 2nd) 2450 3rd) 2432

– Daily 20 EMA stays above 40 EMA, mid-term signal bullish.
– 30 mins 20 EMA stays above 40 EMA, short-term signal bullish.

Today trading range:
– CME soyoil and Nymex crude oil close for Martin Luther King Jr. Day.
– Fundamental: Malaysian palm oil futures rose tracking an improved Chinese Dalian soybean oil performance and as physical prices for crude palm oil (CPO) remained firm. Palm had earlier hit RM2,495 per tonne, its highest in nearly three weeks since the start of the year. Traded volume stood at 35,074 lots of 25 tonnes each. “The market rise is most likely due to Dalian’s strength and firm physical pricing,” said a trader from Kuala Lumpur, referring to physical CPO prices. “Frankly, I’m expecting a drop in the market later as there’s nothing much to sustain a strong rise.” (Reuters)

– Technical: April contract has turned to benchmark price which is traded +RM52 premium. Prices were traded higher during 1st session but had profit-taking in the afternoon and form a Daily Doji candle, indicating market uncertainty. Position trader may try to hold long or target to buy benchmark contract at previous session high breakup.
– Intraday trading:
Sell stop at RM2466, if short position opened, set target at RM2450 – RM2445 and stop loss at RM2477.
Buy stop at RM2495, if buy position opened, set target at RM2510-2520 and stop loss at 2485.
– 30 mins ATR : RM12.79
– Daily ATR: RM 47.36

Yesterday Closing Price:
FCPO Apr 2470 (+6) H 2495 L 2467
Soyoil Mar –
MYR 4.3925

Note: Although the above trading ideas are great starting points, they should not be taken as complete trading recommendations. For more concrete trading idea, may contact writer by email to chewchin8529@gmail.com.

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