Depressed Market Mood In Early 2nd Quarter, 2013. What Now? Do We Sell In May And Go Away?

Over the last the last twelve trading-days, CPO futures prices ranged within a tight congestion band of RM80, reflecting trader’s uncertainty over the direction of the market.

Is this the calm-before-the-storm?

In April, the daily G.M.Teoh Trend-Tracking indicator gave four clear trading signals. The sell-signal of April 9th resulted in a sharp decline in prices while the other three trading-signals ended with mild moves that lacked strong follow-through actions.

As as the close of April 29th, the G.M.Teoh trend-tracker triggered the sell-signal and suggested that the downward wave would expand. Please see chart below.

The BMD July futures has an immediate price-support at the RM2,270-RM2,260 level. Violation of this important technical chart-base could generate fresh technical-selling and force the July futures prices lower to seek a fresh base around the RM2,220-RM2,210.

Currently, the market is at their decline-lows and the prospects of an unexpected minor upward price adjustment on account of technical short-covering activities cannot be ruled out.

In any case, an overhead resistance is seen for the July futures at the RM2,330-RM2,350 levels. This important technical-hurdle could be visited in the event of such an eventuality.

BMD CRUDE PALM OIL – JULY FUTURES.
DAILY-GMTEOH-T.T. SIGNALS

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INDONESIA COMMODITY & DERIVATIVE EXCHANGE (ICDX)

The Indonesian Commodity & Derivative Exchange (ICDX) crude palm oil futures ended April neutral-to-slightly positive.

The G.M.Teoh trend-tracker gave the buy-signal for the July futures on April 24th and managed to remain constructive on May 1st close. (please see chart).

An immediate overhead barrier now stands at the IDR 7,500-IDR7,550 per kilo levels and a successful push above these levels would signal the continuation of the upward momentum.

Chart-support for the immediate term is now seen at the IDR 7,200-IDR 7,100. Violation of these supports would mark the start of a downward cycle.

ICDX – JUL CPO FUTURES

MAKE A DATE WITH G.M.TEOH & DEVELOP A PROFESSIONAL TRADING EDGE FOR CONSISTENT HEDGING RESULTS.

The Palm Oil Master Trader Tutorials (MTT) conducted by me would be held in Indonesia, on 27th & 28th  June, 2013.

For course details and registration kindly check out at “register-now” at www.palmoil-mtt.com  or contact me. Thank you.

Kind Regards,

G.M.Teoh
012-2688121
teohgm@gmail.com