Friday, August 22, 2014

Trading Tips for the Day - 22 August 2014

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 day.

For FCPO, similar pattern of the past few days continued yesterday. There was early support following higher CBT soyoil, China Dalian futures, and ideas that a rebound was overdue. Better sellers surfaced in the afternoon, pressuring market to new lows since 8 October 2009. Quiet cash market and ideas of increasing supplies in the coming months continued to undermine sentiment. Prices were 20 higher to 3 lower in the morning and eroded to 16 lower in the afternoon.

It is difficult to find factors for support at the moment. Fundamentals are weak with high production months in August - October and continuing forecast for bumper US soyabean crop amid very good weather. Even crude mineral oil prices eroded in recent days on better supplies. However, current prices are relatively low and the market will be sensitive to any positive development.

Technical view - prices continuing the down trend towards 2000. Both RSI and stochastic remain grossly oversold and some upward correction is due.  Trend down ; RSI 15.47 ( oversold ) ; parabolic SAR at 2106 ; stochastic oversold ; support 2033 / 2000 / 1950 ; resistance 2100 / 2163 / 2200 / 2250.

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