Weekly FKLI & FCPO Outlook: 3 July to to 7 July 2017

davidleetgydotcom

Publish date: Mon, 03 Jul 2017, 10:36 AM

FKLI & FCPO Outlook:

FKLI & FCPO Video Version:

https://www.youtube.com/watch?v=enzdnCt3irk&t=26s

Text Version:

FKLI

As correctly anticipated in last week's video & outlook, FKLI did had a downtrend and almost hitting our second downtrend target of 1752. The lowest was 1754. Congratulations to those that managed to short the market last week.

Now let us analyze the latest price actions so we can be prepared. The latest sell off broke the market uptrend structure when the sellers pushed FKLI towards 1,752. As you can see here, the latest swing low 1754 is almost the same as those previous lows around 1752. Besides that EMA8-13 in the day chart is in the state of deadly cross. These 2 information tells us that the market structure right now is not uptrend. For traders looking to long FKLI, the professional way is wait for EMA8-13 formed a golden cross. If this happened, 1,761 will be the risk management zone, meaning FKLI will likely to go down if prices goes below 1,761 again. Uptrend targets will be 1,790 and 1,800.

On the other hand, if you are looking to short FKLI, it is best for you to wait for the market to retest the EMA13 first and then go down and break 1,770. By doing so you can avoid chasing lows and unnecessary risks. By doing so you can get better risk to reward ratio. Downtrend targets then will be 1,661 and 1,752. Risk management zone will be 1,780.

FCPO

FCPO failed to formed a lower low. Instead 2,430 zone is seemed to be supporting the market. Could this means that sellers are exhausted? And the bulls are preparing to push the market up?

It is still early to say. Of cos, it does look tempting to long around this price. But I am certain that many people LOST a lot of money trying to long this market early. Such price action is super tempting but it designed to lure the impatient traders and take your money.

The professional way of long this market is to wait for EMA8-13 form a golden cross and prices closed above 2,470. This TWO criteria will help you avoid entering too soon and lose money. If this happen, first uptrend target will be 2516 while second uptrend target will be 2550. Risk management will be 2430, meaning if prices below 2,430, it will negate my uptrend analysis.

Events to watch out this week (Msia Time)

Every 10th biz day of month, Malaysia Palm Oil Board’s Palm Oil stocks data. Expect some price volatility for FCPO. Take good care of your trades.

Every 10th, 15th, 20th, 25th and last biz day of month, ITS & SGS Palm Oil export data. Expect some price volatility for FCPO. Take good care of your trades.

21 June, 10.30pm, Weekly Crude Oil Inventories. Expect some price volatility for WTI Crude Oil. Take good care of your trades.

DISCLAIMER

The information contained in this article is for reference only. No individual financial goals & risk appetite have been taken into account. Futures trading involve high risks.

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