Futures

A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash.

** Source from: www.investopedia.com

Monday, September 21, 2009

FCPO pushed up but does it continue?



15 minutes chart

 


Daily 1-year


The FCPO is speculated to be on the bullish side.However, based on the 15 minutes chart, the FCPO closed at 2190 which is lower than the bolinger band's average line. MACD shows both lines together and not crossing each other until the end of it where there is a very very small drop below the red-dashed line. Regionals on Crude oil and soy oil are both on the red zone with crude oil dropping -2.83 to 69.21 while soy oil drops -0.23 to a 34.87 at this time (quotes stated are as from 11.09pm 21st Sept 2009). Also, by looking on last 15 minute chart, it closed -13 points lower which could spell shorting signs. By looking at this same chart, 7 and 14 MA seems to have crossed each other and it's slightly on the positive turn at the closing. Daily chart shows that 7 MA is shifting a little upwards to cross the 14 MA. MACD shows that the black and red-dashed lines are about to cross.

Well, there are some indicators that shows bullish signs but crude and soy oil seems not to be doing well which could spell trouble for the FCPO. Regional markets especially Europe are also on the red zone and that could explain the big drop in closing last Friday

My Opinion: Short positions, place stop loss at 2210 and long positions, hold on to the position if it breaks 2210.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)