Friday, February 22, 2013

Feb 21 - FKLI, FCPO & SoyOil

Hi all.

FKLI did saw a strong rebound to take out yesterday's high of 1,607.5, before settling at 1,605.5 by close.
I believed many didn't prepare for that strong a rebound, not until it became obvious.

The rebound set a close in a 7th consecutive long-legged candle within the descending flat seen after market return from CNY holiday on Feb13.
This has gone too far to be a flag, I will stay with calling it a Descending flat instead. 
Whatever it is, it has to breakout from the two lines holding the candles, either to the downside or upside, to give a clearer direction for near future.
I'm getting really impatient looking the extending row of long-legged candles squeezed between the two downward-sloping lines.

Irregardless of the impatience, I had been very determined to keep a clear mind amid the shorting frenzy on election rumors. 
And I strongly suggest traders to not get carried away by their bearish bias based on the parliament dissolution which rumors rife that it will be announced tomorrow (Feb 22).

Whether its an event or non-event tomorrow, we just be prepared for either outcome.

FKLI - 7th consecutive long-legged candle in descending flat (Feb 21)

CPO saw a rather wide gap down to open at 2,516 today. Price quickly recover back above 2,520 & 2,530 support levels though.
Saw the day finished at 2,536 with mainly sideway movement after the morning gap.

Price is sitting right on the daily uptrend channel (lower line) as a result of today's gap.
As of now, I see it as a retest on the previous downtrend line following the descend from latest high fo 2,593 early Feb.

SoyOil is rather weak on the ST after it failed to break above the daily up-channel middle line.
On the longer term view though, it is still bullish as long as the uptrend channels still hold the price.
As of writing, price is pulling back to test the channel lower line at about 51.20cents. 
We will check if that will hold, or not, tomorrow morning.

FCPO - Gap Down, Uptrend Channel still holds (Feb 21)

SoyOil - Price below mid-channel, support at 51.20 (Feb 21)

Prepare for the excitement tomorrow. Whether there will be a much-awaited announcement, or not.
Happy Hunting!! :)

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