Monday, August 11, 2014

Trading Tips for the Day - 11 August 2014

FKLI will likely open higher, for the first trade today, one can attempt to Long 1-3 points below the opening price, try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, on Friday market closed at 1-year low today as bearish sentiment dominated. Selling was prompted by a quiet cash market and ideas of slow demand. Expectations of higher production and stocks through October undermined support. Market was higher early on uncertainties following sharp losses in equity markets as the US President Barack Obama, authorized limited airstrikes in Iraq. Prices were 14 higher to 3 lower in the morning and eroded to 23 lower in the afternoon.

MPOB data for July on Monday may be slightly supportive as production and stocks are likely to be lower than earlier expectations. However, the likelihood of slower 1-10 August exports vs a month ago may have more effect on sentiment. Most factors look negative at present. US weather remains near ideal, Indian monsoon is better and chances of El Nino are diminishing. Higher production in the coming months is likely to keep market under pressure.

Technical view - prices continuing their down trend towards 2200. Indicators remain negative. Trend down ; RSI 30.78 ; parabolic SAR at 2268 ; stochastic slightly oversold ; support 2200 / 2135 / 2100 ; resistance 2300 / 2345 / 2400.

Latest update : ITS- Malaysia's August 1-10 palm oil exports drop 22.2%

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