OCT CPO futures closed lower by RM23 at 2517 on high volume of 6,456 lots.
1. CPO retraced to close at exactly our 38% Fibonacci support level of 2517 (see chart).
2.As long as CPO is above the low of yesterday we would want to take a long position.
3. Our sell-stop is now at 2505 OL to exit longs.
4. We still expect an uptrend continuation to test 2743.
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 strong rally.
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 55.64 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.
