FKLI will likely open a little 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 trading day.
For FCPO, bears came out in numbers yesterday, pressuring market to new lows since 30 July 2013. The 1-10 August exports were the lowest in 4 months, the MPOB July data showed higher production and stocks against earlier expectations, Southern POMA reported high 1-10 August production, CBT soyoil and China Dalian eased, and the ringgit gained about 0.3 pct vs USD. Technical selling and long liquidation added losses. Prices were 7 higher to 22 lower in the morning and eroded to 59 lower in the afternoon.
The big concern was the low export numbers by the cargo surveyors which raised ideas of slow demand. With production expected to continue increasing through October, stocks may build up significantly. Absence of weather problems in the US and India are also negative. However, there are ideas that the market may be near the bottom as prices are relatively low. The prospect of increasing use for biodiesel may help to limit the downside.
Technical view - the easy break down from the 2200 support kept indicators negative. Prices may test the 2013 low of 2137. Trend down ; RSI 24.25 ( oversold ) ; parabolic SAR at 2268 ; stochastic oversold ; support 2135 / 2100 / 2050 ; resistance 2250 / 2300 / 2345 / 2400.
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