FKLI will likely open very near yesterday's close, for the first trade today, one can attempt to Short 1-3 points above the opening price. Try get 5-7 points profit, put a stop 5 points away from your entry point. Close your position by the end of the day.
For FCPO, market failed to hold strong early gains and eroded to close sharply lower yesterday. Better sellers came in the afternoon, as bearish sentiment dominated again. Selling followed ideas that bearish vegetable oils fundamentals are not yet fully factored in the market. Stronger ringgit which gained more than 0.4 pct vs USD added weight. Market rose early following higher CBT soyoil and China Dalian futures. Prices were 40 to 8 higher in the morning and eroded to 39 lower in the afternoon.
Market remained under bearish pressure with no change in the weak fundamentals. Coming high production months are of concern. Comments by market analyst Mr Dorab Mistry, who reportedly said that prices tend to gravitate towards cost of production during bear markets, probably added some selling pressure today. However, prices are relatively low at present and big sideway trading range the past few days is indicative of some cautiousness.
Technical view - the weak close kept indicators negative. However, prices have moved into a 2050 -1950 trading range. Trend down ; RSI 18.53 ( oversold ) ; parabolic triggered a "buy" signal at 2045 ; support 1955 / 1900 / 1850 ; resistance 2050 / 2100 / 2163.
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