Tuesday, August 19, 2014

Trading Tips for the Day - 19 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 trading day.

For FCPO, market closed slightly lower yesterday after trading on either sides of the previous day's close. There was light support early following the technically oversold situation and ideas that prices were relatively low. Weakness in CBT soyoil and China Dalian futures capped gains while encouraging selling on rallies. Prices were 7 higher to 8 lower in the morning and traded mostly around 5 lower in the afternoon.

There are no changes in the bearish fundamentals. Palm oil production will be higher in the coming months through October and the stocks will increase. Prospect of El Nino weather has diminished. US soyabean crop will be a record high with current very good weather. Generally, global oilseeds supplies are exceeding demand. However, prices are now relatively low and attractive for increasing use in fuels and biodiesel, which may limit the downside.

Technical view - indicators continue negative. Prices may erode to 2000. There may be some upward correction from the oversold situation in both RSI and stochastic. Trend down ; RSI 18.59 ( oversold ) ; parabolic SAR at 2163 ; stochastic oversold ; support 2085 / 2050 / 2000 ; resistance 2163 / 2200 / 2250 ; open interest increasing.

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