Crude Palm Oil Futures (FCPO)Trade
It has been a long time that I traded the FCPO contract. I checked my record. The last time was on 10 Apr 2006!
Today I decided to trade FCPO contract again. I was excited but at the same time nervous. My heart was beating faster than usual.
I called my broker to check whether my cheque has been cleared and credited to my account. It had. Yes! I could trade.
FCPO has always been a highly volatile instrument. It is fairly common for it to gap up and down overnight. I decided therefore I would day trade to minimise my exposure. Besides the commission for day trade is lower by half.
I will share with you how my trade went. I made two (2) trades - one during the morning session and the other one during the afternoon session.
I enclosed the FCPO 30-min and 5-min charts.
FCPO 30-min Chart on 12 Jun 09
FCPO 5-min chart on 12 Jun 09
Morning Trade
The 30-min chart showed FCPO making lower highs and lows suggesting downtrend. Although the 20-period SMA was still rising but the uptrend line was broken by the 1st 30-min long black(red) price bar on 12 Jun 09.
The 5-min chart showed FCPO pulled back to the declining 20-period SMA line half way through the morning session.
Entered short at 2492 around 11.35am after the 11.20am and 11.25am 5-min price bar low at 2493 was taken out.
Exit at 2498 around 12.10pm after the downtrend line was broken for a loss of -6 points. The 20-period SMA line and MACD line were also beginning to turn up.
Afternoon Trade
FCPO gapped down 16 points at the start of the afternoon session. Wooh... It hurt! I could have made at least 20 points... but just to console myself I told myself I could have lost the same amount if it had gapped up instead! That's how volatile FCPO is!
The 30-min chart now showed FCPO 20-period SMA line was declining.
The 5-min chart showed FCPO pulled back to the declining 20-period SMA line and 38.2% Fibonacci retracement line almost half way through the afternoon session.
Entered short at 2469 around 4.25pm after the 4.10pm 5-min price bar low at 2470 was taken out.
Exit at 2451 around 5.20pm after the 2455 support line was broken for a profit of +18 points. At least it was more than enough to cover the morning trade losses.
Disclaimer:
Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investmest decision based on my posting and information presented in this blog.
Today I decided to trade FCPO contract again. I was excited but at the same time nervous. My heart was beating faster than usual.
I called my broker to check whether my cheque has been cleared and credited to my account. It had. Yes! I could trade.
FCPO has always been a highly volatile instrument. It is fairly common for it to gap up and down overnight. I decided therefore I would day trade to minimise my exposure. Besides the commission for day trade is lower by half.
I will share with you how my trade went. I made two (2) trades - one during the morning session and the other one during the afternoon session.
I enclosed the FCPO 30-min and 5-min charts.
FCPO 30-min Chart on 12 Jun 09
FCPO 5-min chart on 12 Jun 09Morning Trade
The 30-min chart showed FCPO making lower highs and lows suggesting downtrend. Although the 20-period SMA was still rising but the uptrend line was broken by the 1st 30-min long black(red) price bar on 12 Jun 09.
The 5-min chart showed FCPO pulled back to the declining 20-period SMA line half way through the morning session.
Entered short at 2492 around 11.35am after the 11.20am and 11.25am 5-min price bar low at 2493 was taken out.
Exit at 2498 around 12.10pm after the downtrend line was broken for a loss of -6 points. The 20-period SMA line and MACD line were also beginning to turn up.
Afternoon Trade
FCPO gapped down 16 points at the start of the afternoon session. Wooh... It hurt! I could have made at least 20 points... but just to console myself I told myself I could have lost the same amount if it had gapped up instead! That's how volatile FCPO is!
The 30-min chart now showed FCPO 20-period SMA line was declining.
The 5-min chart showed FCPO pulled back to the declining 20-period SMA line and 38.2% Fibonacci retracement line almost half way through the afternoon session.
Entered short at 2469 around 4.25pm after the 4.10pm 5-min price bar low at 2470 was taken out.
Exit at 2451 around 5.20pm after the 2455 support line was broken for a profit of +18 points. At least it was more than enough to cover the morning trade losses.
Disclaimer:
Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investmest decision based on my posting and information presented in this blog.
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