FKLI will most likely open flat, for the first trade today, one can attempt to Long 1-3 point 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, market extended losses to a 1-year low today after failing to hold early gains. Selling was prompted by expectations of higher production and stocks in the coming months and absence of bullish factors. Weakness in CBT soyoil added pressure. Some early support from the prospect of lower end July stocks, to be reported by MPOB on 11 August, as indicated by the Reuters poll did not follow through. Prices were 8 higher to 13 lower in the morning and 15 lower to unchanged in the afternoon.
Difficult to shake the bearish sentiment at present unless weather turns adverse. With seasonally high production coming up in August - October, there is little incentive for buying. The weakness in CBT soyoil, in light of the very good weather, also undermined sentiment. However, there may be some support in the short term on the likelihood of MPOB reporting lower than expected production and stocks in July.
Technical view - the break out of consolidation to new lows is negative. Prices may move to 2200. Trend down ; RSI 31.78 ; parabolic SAR at 2280 ; support 2200 / 2135 / 2100 ; resistance 2300 / 2345 / 2400.
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