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

Wednesday, September 16, 2009

Gap covered but what's next for FCPO?

15 Minutes Chart
 
Daily 1-Year Chart



FCPO today continued to rise up further to cover the gap that was done on Monday giving a day high at 2181 which actually had broken the new high of 2180 by one point. This could spell trouble for people who have short positions. Looking at the 15 minutes chart, on 7,14 and 30 MA, it has shown positive signs but MACD shows an that both lines are on the same level. Looking at new highs created, it is could likely be another bounce up. However, base on the Daily 1-year chart, the trend seems to still be down by looking at the 7,14 and 30 MA's but at the tip of the 7 MA, seems to be curving upward but still has no crosses with 14 and 30 MA. MACD also shows for the daily 1-year chart that it is still trending downwards but be alert for spikes.
 
My Opinion: For short positions, place a stop loss at 2195 and for those who have long positions, hold on to it if it breaks 2195. 

**Chart from OSK's 188OMS
 
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