FKLI will likely open 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.
Market closed mixed yesterday with forwards higher. Nearbys eased on long liquidation. Buying was encouraged by higher CBT soyoil and China Dalian futures. Steady cash market and weaker ringgit, which lost about 0.3 pct vs USD were also supportive. Gains were however capped by lack of bullish factors. Prices were 12 to 0 higher in the morning and extended gains to 16 higher in the afternoon before closing around mid range.
There were no new factors. Ideas that downside may be limited with current relatively low prices probably induced support. Stocks are relatively low and cash sellers seem reserved at present levels. However, fundamentals have negative outlook with seasonal high production in Aug - Oct and bumper US soybean crop expected.
Technical view - indicators remain negative with prices continuing within the downtrend channel.
Trend down ; RSI 33.97 ; parabolic SAR at 2272 ; support 2240 / 2200 / 2135 / 2100 ; resistance 2300 / 2345 / 2400.
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