FKLI & FCPO Weekly Outlook Youtube

FKLI & FCPO Weekly Outlook Text

It's been 1 week+ since I last posted my weekly outlook. This is because I took a time off from trading & business last week to reset my mind. In fact me and my wife took a short 1 week holiday to Iran. What I am trying to say is, trading is a long term business, it is like a marathon and we traders are like athletes. Think about this for a second, what will happen when an athlete trained and played too hard without taking a break? They will get tired, both mentally and physically. As a result, their performance slips and they also increase the risk of getting hurt. Trading can be a real grind, it requires you to be mentally strong from time to time. If you did not take some time off to recover, trading can really sap you and consequently you will burn out and trade impulsively and suffer unnecessary losses.

Taking trading breaks periodically can ensure you are trading at your best levels. I recommend you to try it. It may not be easy at first because you do not want to miss good trades. Same goes to me, sometimes I don't want to miss opportunities. But the fact is the market will always be opened and you need some breaks to re energize and focus yourself. You must force yourself to step away and recover. I guarantee you the results will definitely worth it in the long run.

FKLI

First up its FKLI. Previously for the past few months, the market has been creating lower highs and lower lows. Consequently the market fell all the way to the the 1,730 structure. If you look towards the left, during April 2017, this 1,730 is a strong structure support, where buyers came and subsequently pushed FKLI up high. So this is how we are going to prepare for battle plan for FKLI this week. We will be looking for buying opportunities shall prices stay above 1,745 and price action forming higher highs and lows. For additional reference you can check out whether prices able to stay above the EMA 13. Shall these criterias are met, prices are likely to arrive to either 1,761 or 1,777. The reason why I picked these 2 targets because previously FKLI had obvious turnaround. So for the time being we will keep an eye on these 2 targets if we had a buy position. Risk management, where we determine whether our uptrend analysis is valid or not, is 1,730 zone.

And when prices do break below 1,730 zone, we refer to another plan to find short selling opportunities. Specifically, when prices below 1,730 and price action forming lower highs and lows. Downtrend targets will be 1,717 which previously an obvious turnaround where buyers step into the market with great numbers. So we have to be aware of that line. The second target is the psychological 1,700 zone. Our cut off point for this downtrend analysis is 1,745. 

 

 

This is the latest situation. We have FCPO forming higher highs and higher lows since start of October, so that tells us the main market trend is uptrend. Now that we have that big picture, we can formulate our battle plan. We will look for buying opportunities to trade in-line with the potential uptrend if prices continues to form higher highs and lows as well as price above 2,820. Uptrend targets will be the 2,850 and 2,900. The 2,900 was picked because it is a psychological level as well as previously sellers well resisted FCPO during February, March and September. Risk management will be the 2,820, any prices below this will negate our uptrend analysis.

 

 

So when prices do negate our uptrend analysis, we change our battle plan and adapt. Specifically, when prices below 2,820 and price action forming lower highs and lows, we will looking for selling opportunities. Downtrend targets that we have to be aware of when we hold our short positions will be 2,771 and 2,720, these 2 zones. This is because previously the buyers defeated the sellers and hence there strong buyers still active in these 2 areas. Risk management will be 2,820, which means any price action above this will negate our downtrend analysis.

 

 

Alright, that wraps up our weekly futures market outlook. Remember it is very important for us traders to take the time off. A small break from trading will help us recharge our energy so we can trade better and not just trade based on our bad emotions. These small breaks certainly helped me improve my trading performance over the years and I guarantee it will help you too.

FKLI & FCPO & Forex events to watch out this week (Msia Time). Take good care of your trades.

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

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

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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