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.
For FCPO, market closed slightly higher yesterday in an erratic and choppy session. September was, however, lower on long liquidation. Buying was encouraged by steadiness in China Dalian futures and e-CBT soyoil. Prospect of increased imports by China after reports that banks have resumed credit facilities was also supportive. However, negative fundamentals continued to prompt intermittent selling throughout the session. Prices were 11 lower to 12 higher in the morning and 25 higher to 11 lower in the afternoon.
Tussle between weak fundamentals and low prices is continuing. It may be difficult for the market to rise in view of the coming high production months through October and good weather for the US soyabean crop. However, the sharp fall from May could have accounted for these negative factors with the current low prices. Meanwhile, the report on China's Shangdong Changhua's resumption of palm oil imports is positive.
Technical view - prices moved into the 2050 - 1950 trading range. Indicators remain negative. Trend down ; RSI 19.37 ( oversold ) ; parabolic SAR at 1957 ; support 1955 / 1900 / 1850 ; resistance 2050 / 2100 / 2163.
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