FKLI will likely open a few points higher, for the first trade today, one can attempt to Long 1-3 points below the opening price. Try get 5-7 points profit, put a stop 5 points away from your entry point and close your position by the end of the day.
For FCPO, weakness in CBT soyoil pressured market lower yesterday. Adding weight was a firmer ringgit which gained about 0.3 pct vs USD. Quiet cash market and ideas of slow demand, with SGS also reporting lower 1-31 July exports vs June, also undermined sentiment. Prices were 18 to 29 lower in the morning and 31 to 14 lower in the afternoon.
Most factors are negative at present. Unless demand improves, stocks will build up with the seasonal peak production in August - October. Chances of El Nino weather are also diminishing and in anycase, is only expected to be moderate if it occurs. CBT soyoil outlook is also negative with record high soyabean crop expected in light of near ideal weather. However, current stocks are not burdensome and prices are deemed to be relatively low. These may limit the downside.
Technical view - prices continue to trade sideways in a 2250 - 2300 range. Breakouts from these levels may see the next major move. Trend sideways ; RSI 34.68 ; parabolic SAR at 2287 ; support 2245 / 2200 / 2135 ; resistance 2300 / 2345 / 2400.
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