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.
