FKLI will likely open a little lower, for the first trade today, one can attempt to Short 1-3 points above 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.
Market closed higher yesterday after trading on either sides of the previous day's close. Prices dropped to fresh new lows since 30 July 2013 early. Buying was led by bottom picking on ideas that the downside may be limited. Technical support from the oversold situation and short covering added gains. Market was lower early in the morning and afternoon following weakness in CBT soyoil and China Dalian futures. Prices were 15 lower to 19 higher in the morning and 4 lower to 13 higher in the afternoon.
There was no fresh factor. CBT soyoil and China Dalian probably followed our sharp erosion yesterday. Support today looked mainly technical and also profit taking after big drop the past 2 days. The fundamental outlook remains negative with slow demand and increasing production. Better global oilseeds supplies, amid near ideal weather for the current US soyabean crop, added to the gloom.
Technical view - prices correcting from the oversold situation indicated in both RSI and stochastic. No change in negative indicators. Trend down ; RSI 27.22 ( oversold ) ; parabolic SAR at 2247 ; stochastic oversold ; support 2135 / 2100 / 2050 ; resistance 2250 / 2300 / 2345 / 2400 ; open interest increasing.
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