NOV CPO futures closed lower by RM95 at 2389 on higher volume of 7,466 lots.
1. We are now short Nov CPO as it closed below 2483.
2. Our buy-stop is 2452 or higher at close to exit shorts but do not turn long as it is still within the Bollinger band.
3. Even if one trades base don Ichimoku chart, it is now a short trade as CPO closed below 2442.
General commentary: CPO is now technically bearish. We are turning short.
Next upside targets: 2743/3008/3046 (targets revised on July 6)
Downside support:2226/2153
Ichimoku chart: (Based on kumo (clouds), CPO is now short as resistance is at 2494. Ichimoku chart will turn long at 2494 OH (updated on Aug 16, 2007)
Average True Range for CPO: A.T.R. is 65.57 for CPO. This implies you need to put a stop above/below this A.T.R. or you can get stopped out due to the volatility factor. We advocate a 1.5 x or 2 x the ATR. We are using a 5 days ATR.
1.We have a very good feeling that CPO is likely to rally today based on the “hammer" bottoming out pattern yesterday.
2.On top of this, stochastic is oversold suggesting a rebound.
3.Note CPO did not close below 2890, the immediate support. Intra-day breakdowns are not counted.
4.CPO rested on the lower Bollinger band and not below, hence there is no sell signal.
General commentary: We are still long and expect CPO to test 3090-3112 but note sell-stop @ 2884 OL. Note that based on the Ichimoku chart, CPO is still long.
Next upside targets: 3090-3112(targets revised on Oct 16/Nov 23)
Downside support: 2890/2800/2680.
Ichimoku chart: (Based on kumo (clouds), CPO is now long. The support is now 2554.
Short @ 2553 OL (updated on Nov 30, 2007)
Average True Range for CPO: A.T.R. is 50.50 for CPO. This implies you need to put a stop above/below this A.T.R. or you can get stopped out due to the volatility factor. We advocate a 1.5 x or 2 x the ATR. We are using a 5 days ATR.