Good Morning all, yesterday palm oil price took a breather and its quite volatile through the end of the trading day. Let see how it will re-act today. As traditional technical analysis often used previous price behavior to made any futures price direction, I would emphasize on how well it could tell me to act immediately. Its not a science as you wont get any accurate reading on price direction no matter how well you can analyse the market. resistance and support are meant to be breach and if it does not, price might hovering in crappy range trading. News coming through:
-US Dow Jones gained 30.46 points to 10437.42 in yesterday trading, Dow Jones gained for the 3rd day as rebound in metal prices boosted commodity producers share prices. Investors in the market are optimistic currently and believing the market still have more room to go higher. Goldman Sachs said it will be teaming up with Warren Buffet to provide assistance to 10000 small businesses in the US, which small businesses play an important role in creating jobs and growth of a country's economy.
-Palm oil prices will likely be supported by weather concerns, as heavy rains and floods may disrupt harvesting activity in oil palm estates. -By Shie-Lynn Lim, Dow Jones Newswires.
-Oil advanced for a third day in New York after an industry report showed a decline in crude stockpiles in the U.S., the largest energy consumer. Crude oil for December delivery rose 24 cents to settle at $79.14.
FCPO Daily chart
The term 'all gaps will be fill eventually' might not happen in this case. I am somewhat susceptible that this gap will be fill judging from the positive sentiment in the commodities market. If price does fall, maybe 50% of it would be fill. Now, technical analysis are not going to tell me for sure whether price is going to gap up or gap down, but in this case if the price do gap down not too much from yesterday close it might attempt to close the gap. Either way, I am still bullish on palm oil and this uptrend. None any trend will travel on straight line, it always comes with some 'nasty' retracement, correction, pullback, squeezing, hammering, shaking, etc before you can see a clear direction on that trend. If you are serious about trading, its your job to filter out all these 'noise' in the market. Good Luck comrade.
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