OCT CPO futures closed lower by RM4 at 2521 on low volume of 5,384 lots.
1.CPO traded within a small range yesterday.
2.We remain long as no stops were hit.
3.Remain sell-stop @ 2458 OL.
4.We still expect an uptrend continuation to test 2743 but there is no buy signal right now.
General commentary: CPO has exceeded its Wave 3 = Wave 1 target. It is working its way towards the Wave 3=1.618 x Wave1 target of 2743. Get ready for a rally and aggressive traders can “further buy".
Next upside targets: 2743/3008 (targets revised on July 6)
Downside support:2489/2418/2384/2153
Ichimoku chart: (Based on kumo (clouds), CPO is long. Kumo support is at 2111. Ichimoku chart will turn short @ 2110 OL (updated on June 11, 2007)
Average True Range for CPO: A.T.R. is 52.57 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.
SEPT CPO futures closed lower by RM24 at 2348 on relatively high volume of 6,066 lots.
1.CPO fell and hit our sell stop. We are now stopped out of longs and have turned short.
2.Turn short but place buy-stop @ 1383 OH to exit shorts.
3.It would seem that the Wave 4 downtrend is not over until it hit the wave 4 of aa lesser degree, i.e. @ 2153.
4.The next target is therefore at 2153.
General commentary: We were incorrect. There is no rebound but instead CPO fell and violated the support 2350 support. As such we are now short. CPO can fall further as stochastic, RSI and Bollinger bands are bearish.
Next upside targets: 2560/2749 (hit)/3313 (targets revised on June 5)
Downside support: 2153
Ichimoku chart: (Based on kumo (clouds), CPO is long. Kumo support is at 2111. Ichimoku chart will turn short @ 2110 OL (updated on June 11, 2007)
Average True Range for CPO: A.T.R. is 96.50 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.