Trading Tips for the Day - 30 September 2014

FKLI will likely open almost at yesteday's closing price.  For the first trade today, one can attempt to Long 1-3 points 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.

Trading Tips for the Day - 29 September 2014

FKLI will likely open higher, for the first trade today, one can attempt to Long 1-3 points 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.

Weekend profit taking closed market lower today in choppy trading. However, benchmark price as sharply higher for the 4th consecutive week. Selling was also tied to protection against market outlook from the Globoil Conference in India this weekend. Slightly easier CBT soyoil and China Dalian futures also undermined sentiment. Prices were 21 lower to 6 higher in the morning and 4 higher to 21 lower in the afternoon.

The strong exports and lower September production vs August have changed market outlook. Any reduction in September end stocks will be supportive as production historically tapers from November. Full September exports will be closely followed in coming week. Meanwhile attention will also be drawn towards the Globoil Conference for some incentives.

Technical view - no change in positive indicators. Prices correcting from strong gains the last few days.  Trend up ; RSI 60.25 ; parabolic SAR at 2116 ; stochastic overbought ; support 2150 / 2065 / 2000 / 1950 ; resistance 2210 / 2250 / 2300 / 2345.

Trading Tips for the Day - 26 September 2014

FKLI will likely open lower, for the first trade, one can attempt to Long 1-3 points 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.

As for FCPO, market rose for the 3rd consecutive day, closing sharply higher. Buying followed strong exports for 1-25 Sep which was highest since Dec 2012 for the same period. Strong gains in CBT soyoil and China Dalian futures added support. Technical buying as prices broke above 2173 magnified gains. Weaker ringgit, which lost about 0.3 pct vs USD today, was also positive. Prices rose 10 to 24 higher in the morning and extended gains to 53 higher in the afternoon.

Demand factors have dominated sentiment this week. Together with reports of lower Sep production vs Aug, palm oil fundamentals are tilting towards positiveness. Prospect of tapering production in coming months and continuation of strong demand will be supportive. However, it is difficult to get away from the bumper US soybean crop and big global oilseed supplies. The GLOBOIL Conference in India this weekend, starting tomorrow should be interesting.

Technical view - prices are continuing their climb to 2250.  Trend up ; RSI 64.0 ; parabolic SAR at 2099 ; support 2150 / 2065 / 2000 / 1950 ; resistance 2250 / 2300 / 2345.

Trading Tips for the Day - 25 September 2014

FKLI will likely open higher today after Dow Jones snapped a 2 day triple digit loss.  For the first trade, one can attempt to Long 1-3 points 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. 

As for FCPO,  market extended gains yesterday with good support in the afternoon. Buying was encouraged by MPOA report of more than 12 pct drop in 1-20 September production vs a month ago. Higher CBT soyoil and China Dalian futures added support. Fresh sellers were lacking. Prices were 3 lower to 15 higher in the morning and rose gradually to 31 higher in the afternoon.

There are no new factors. A lower September production vs August, last seen in 2010, will raise the prospect of production tapering off in the coming months. This may see stocks depleting if exports maintain the current good pace. Increased use for fuel and biodiesel, including the higher biodiesel mandates in Brazil and Argentina using soyoil as feedstock, is also positive. However, bigger global vegetable oils supplies, in light of record US soyabean crop, may cap the upside.

Technical view - the strong close kept indicators positive. Prices continued to rise within the up trend channel towards 2250.  Trend sideways ; RSI 58.89 ; parabolic SAR at 2079 ; support 2065 / 2000 / 1950 ; resistance 2173 / 2200 / 2250.

Trading Tips for the Day - 24 September 2014

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.

As for FCPO, arket rebounded yesterday on improved sentiment. Buying was encouraged by firmer cash market and expectations of strong demand. Ideas that market has bottomed also encouraged support. Short covering and technical considerations added gains. Lower CBT soyoil and easier China Dalian futures did not have much effect. Prices were 7 to 34 higher in the morning and were 6 to 41 higher in the afternoon.

Sentiment looks more positive at present after the relatively high September exports todate. Reports of bearish fundamentals, ie. higher stocks, bumper US soyabean and global oilseeds production, etc. are getting stale. Prospects of continuing strong demand is getting more weightage. Fresh news seem to be more supportive, eg. lower September production which may point to declining production in the coming months.

Technical view - prices resuming the up trend towards 2250 after correction.  Trend sideways ; RSI 55.03 ; parabolic SAR at 2064 ; support 2065 / 2000 / 1950 ; resistance 2173 / 2200 / 2250.

Trading Tips for the Day - 22 September 2014

FKLI will likely open higher, for the first trade today, one can attempt to Long 1-3 points 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.

As for FCPO, Weekend profit taking closed market lower today although prices were higher for the third consecutive week. Selling was prompted by sharply lower CBT soyoil and erosion in China Dalian futures.
Technically, the overbought situation added pressure. Losses were held by rumours of good exports for 1-20 September to be reported by the cargo surveyors. Prices were 32 to 10 lower in the morning and eased slightly further in the afternoon.

Market will be looking towards the export numbers for incentives in the coming week. A continuation of
strong exports are needed to maintain the positive trend. However, the fundamental outlook remains bearish. Stocks will likely increase through October although big jumps, like in August, are not expected. USA may see some harvest pressure from a bumper soyabean crop. Indian weather also gives better crop prospects.

Technical view - prices correcting from the overbought situation indicated in the stochastic. Ability of prices to hold above 2100 may carry prices to 2250. Good support seen at 2050.  Trend up ; RSI 52.97 ; stochastic turned down from overbought ; support 2090 / 2050 / 2000 / 1950 ; resistance 2173 / 2200 / 2250 / 2300 ; open interest decreasing.

ITS reports that Malaysia palm oil export for 1 - 20 September is up 21.2%.

Trading Tips for the Day - 19 September 2014

FKLI will likely open higher today, for the first trade, one can attempt to Long 1-3 points 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.

BREAKING NEWS!! 18 September 2014

Malaysia's Central Bank keeps overnight policy rate unchanged at 3.25%

Trading Tips for the Day - 18 September 2014

FKLI will likely open a little higher today, for the first trade, 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.

As for FCPO, market closed higher for the 4th consecutive day with better gains in the nearbys. Buying was tied to improved sentiment on ideas of strong demand following the high 1-15 Sep exports. Firmer CBT soyoil and steady China Dalian futures were also supportive. Fresh sellers were lacking. Short covering, especially in nearby positions added gains. Prices were erratic in the morning, trading 14 lower to 11 higher and rose to 32 higher in the afternoon.

Prospect of strong demand and ideas that market had bottomed are boosting sentiment. Technical considerations were also supportive. The firmer ringgit, which gained about 0.3 pct vs USD today, had no effect. Traders were probably giving better weightage to Southern POMA report of lower 1-15 Sep production and current record low US soyoil stocks. Meanwhile media reports of China Central Bank injecting 500 billion yuan into China's top five banks to stimulate the economy may have some positive effect.

Technical view - there was some initial correction from the overbought situation in the stochastic which found good support and maintained the strong up trend. Prices may rise to 2250. Trend up ; RSI 59.35 ; stochastic overbought ; support 2090 / 2050 / 2000 / 1950 ; resistance 2163 / 2200 / 2250.

Trading Tips for the Day - 17 September 2014

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 and put a stop 5 points away from your entry point.  Close your position by the end of the day. 

As for FCPO, market rose to close higher for the 3rd consecutive day. Support followed sharply higher CBT soyoil and strong gains in China Dalian futures. Big increase in 1-15 September exports and a weaker ringgit, which lost about 1 pct vs USD, were also supportive. Gains were, however, capped by the technically overbought situation indicated in the stochastic and negative projections from Mr Dorab Mistry. Prices were 7 to 37 higher in the morning and 40 to 7 higher in the afternoon.

The 1-15 September exports were the highest for the first fifteen days since October 2013. This is positive and gave ideas that current prices are competitive to attract strong demand. Even the CBT soyoil showed sensitivity towards any positive news with strong gains last Friday. However, concerns over higher production and stocks through October as well as bumper US soyabean crop may keep support cautious.

Technical view - prices continued their up trend. An effective break above 2100 may carry prices to 2250. The overbought indication in the stochastic may see some downward correction.  Trend up ; RSI 53.03 ; stochastic overbought ; support 2050 / 2000 / 1950 ; resistance 2163 / 2200 / 2250.

Trading Tips for the Day - 15 September 2014

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 trading day.

As for FCPO, market extended gains to close at its highest level in nearly 4 weeks Friday. Trading was rather choppy throughout as prices fluctuated on either sides of the previous day's close. Buying was encouraged by firmer cash market and ideas of good demand. Higher China Dalian futures and e-CBT soyoil were also supportive. Expectations of high production and stocks through October prompted selling which resulted in choppy trading. Prices were 20 higher to 17 lower in the morning before closing 8 higher.  Choppy session continued in the afternoon with prices 6 lower to 19 higher.

Strong gains the last 2 days inspite of sharply higher August production and stocks reported by MPOB pointed to a positive change in sentiment. The record US soyabean crop was also discounted as already factored in. Prospect of increased demand by the fuel sector, consumers replenishing low stocks, and higher exports on zero cpo export duty are encouraging support.

Technical view - prices continued the short term up trend towards 2100.  Trend up ; RSI 50.18 ; stochastic overbought ; support 2050 / 2000 / 1950 / 1914 ; resistance 2100 / 2163 / 2200.

Trading Tips for the Day - 12 September 2014

FKLI will likely open almost unchanged, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from the opening price.  Close your position by the end of the day.

For FCPO market recovered from early erosion to close sharply higher yesterday. Buying was encouraged by firmer cash market with reports of good buying interest. Higher close in China Dalian futures also underpinned sentiment. Technical support as prices rose above 2050 added gains. There was some early selling pressure tied to concerns over increasing supplies in the coming months. Prices were 26 lower to 16 higher in the morning and rose to 40 higher in the afternoon with strong support towards close.

There was more focus on demand today. The good 1-10 September exports were encouraging and will likely continue with the zero export duty. Sentiment may also be boosted by the lower Southern POMA production report for 1-10 September. However, supplies are increasing with higher stocks expected in September - October. The record US soyabean crop is also negative.  Short term trend up ; RSI 47.40 ; 5-day MA intersected 20-day MA from below ; support 2000 / 1950 / 1914 ; resistance 2100 / 2163 / 2200.

Trading Tips for the Day - 11 September 2014

FKLI will likely open a little higher, for the first trade today, one can attempt to Long 1-3 points 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. 

As for FCPO, late buying closed market mixed after early erosion found good support. Weakness in CBT soyoil and China Dalian futures prompted selling early with losses being held by the very good 1-10 September exports. Bearish MPOB data again resulted in selling pressure in the early afternoon before recovering towards close. Prices did a full circle, eroding 7 to 37 lower in the morning and trading at 29 lower to 1 higher in the afternoon.

Market seemed to be discounting the bearish MPOB August data as already expected. However, the big increase in stocks is of concern as production is expected to remain high in September - October. Weakness in CBT soyoil, due to expectations of record soyabean production with current good weather, also weighed on sentiment. However, there are feelings that market has accounted for these bearish factors already and may have bottomed. Demand looks good (the 1-10 September exports were highest for the first ten days since October 2013) and there are expectations of increased use for fuel and biodiesel.

Technical view - prices correcting from the overbought situation in the stochastic. No change in the short term positive trend.  Trend sideways ; RSI 40.66 ; stochastic turned down from overbought ; support 2000 / 1950 / 1914 ; resistance 2068 / 2100 / 2163 / 2200.

Trading Tips for the Day - 10 September 2014

FKLI will likely open slightly 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.

As for FCPO, market closed lower yesterday as sellers took protection against the likelihood of a bearish MPOB August data tomorrow. Losses were held by rumours of higher 1-10 September exports to be reported by the cargo surveyors today. Lower CBT soyoil and China Dalian futures undermined market early. But the weaker ringgit, which lost about 0.5 pct vs USD, helped to limit losses. Prices were 1 higher to 18 lower in the morning and eroded to 39 lower in the afternoon before recovering slightly towards close.

Exports for 1-10 September and the MPOB data tomorrow will be followed. The MPOA August production estimate was rather high but may already be discounted with the sharp drop in prices during August. Exports may be of greater interest. This will indicate if prices are low enough to induce better demand. Meanwhile, the USDA soyabean crop ratings pointed to bumper production under near ideal weather, which is negative.

Technical view - prices correcting from the overbought situation indicated in the stochastic. The short term trend remains positive. Trend up ; RSI 40.80 ; stochastic overbought ; support 2000 / 1950 / 1914 ; resistance 2068 / 2100 / 2163 / 2200.

Trading Tips for the Day - 9 September 2014

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.

As for FCPO, good support continued yesterday. Market closed higher after choppy trading in the afternoon. There was good support in the morning following higher CBT soyoil. Ideas that market may have seen the lows encouraged buying, led by short covering. However, weak fundamentals provided resistance and checked gains. Prices rose 16 to 43 higher in the morning and were 32 to 2 higher in the afternoon.

There was no new factor. The zero export duty for September and October gave good reason for support after very sharp drop since July. This raised expectations for increased exports and for use in the fuel sectors. However, most fundamentals remain negative with higher production through October, record high US soyabean crop under excellent weather, bigger global oilseeds supplies, and better Indian monsoon.

Technical view - short term trend is positive. The overbought situation indicated in the stochastic may see some downward correction which should be a buy opportunity.  Trend up ; RSI 42.27 ; stochastic overbought ; support 2000 / 1950 / 1914 ; resistance 2100 / 2163 / 2200.

Trading Tips for the Day - 8 September 2014

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 and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market closed mixed with nearbys higher but forwards lower. News of zero CPO export duty for September and October encouraged buying especially in the September and October positions. Higher CBT soyoil and China Dalian futures were also supportive. Concerns over higher production and increasing stocks in the coming months capped gains while prompting selling on rallies. Weekend profit taking added pressure. Prices were 11 higher to 23 lower in the morning and 7 higher to 35 lower in the afternoon.

Sentiment was lifted by the prospect of better export demand with announcement of zero export duty, which may extend to December. Together with the current relatively low price, some rebound from the sharp drop the past one month will not be surprising. However, the market is entering the high production months in August - October, and together with expectations of record high US soyabean crop, fundamentals are negative. MPOB data for August and the export numbers will be followed next week.

Technical view - prices moved into consolidation within a 2050 - 1915 range. Trend down ; RSI 38.53 ; parabolic triggered a "buy" signal at 2034 ; support 1950 / 1914 / 1850 ; resistance 2050 / 2100 / 2163 ; open interest increasing.

Trading Tips for the Day - 5 September 2014

FKLI will likely open very near to yesterday's closing price, 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 rose for the third consecutive day to close sharply higher yesterday. Strong buying came in the afternoon following rumours that Malaysia will be abolishing the export duty on crude palm oil. Firmer cash CPO market lent credit to the rumours. Short covering and technical considerations as prices broke above 2000 added support. Similar to the last 2 days, market eased early in tandem with CBT soyoil and China Dalian futures. Prices were 13 lower to 18 higher in the morning and rose up to 55 higher in the afternoon.

Market acted on its own today and showed its sensitivity to positive news. Any abolishment of the export duty is positive and will help in increasing exports. Market was also supported by ideas that current bearish factors were already factored in after big drop the past month. However, fundamentals remain negative with big increase in production and stocks in August. Demand will be closely followed in the coming months.

Technical view - the break above 2000 is slightly positive and may carry prices to 2100. Trend down ; RSI 39.12 ; parabolic SAR at 2034 ; macd intersects trigger line from below ; support 1950 / 1915 / 1850 ; resistance 2050 / 2100 / 2163 ; open interest increasing.

Trading Tips for the Day - 4 September 2014

FKLI will likely open at near yesterday's closing price.  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.

As for FCPO, market extended gains yesterday as lower opening found good support. Buying followed steadiness in China Dalian olein futures and ideas that the downside may be limited. Continued technical correction from the oversold situation added support. Sentiment was also underpinned by the improved export pace the last few days of August and prospects of increased use for biodiesel. Market was lower early following easier CBT soyoil. Prices were 12 lower to 33 higher in the morning and held steady in the afternoon.

There seemed to be ideas that market is now at the lows, and that all bearish factors have already been factored into the market. There is no dispute that production will be higher in the coming months and the US will have record high soyabean production under the current excellent weather. However, there are signs of improving demand, including from the fuel sector. The reports of increased biodiesel mandate in Brazil is positive.
Technical view - prices continued to correct from the oversold situation. The positive divergence between price and RSI / stochastic points to further upside.  Trend down ; RSI 28.58 ( oversold ) ; parabolic SAR at 2039 ; support 1915 / 1850 / 1800 ; resistance 2000 / 2050 / 2100 / 2163 ; positive divergence between price and RSI ; positive divergence between price and stochastic.

Trading Tips for the Day - 3 September 2014

FKLI will likely open a few points lower, for the first trade today one can attempt to Short at 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.

As for FCPO, market closed higher yesterday after eroding to fresh new low early. Buying was encouraged by better export pace the last few days and higher China Dalian olein and soyoil futures. Weaker ringgit, which lost about 0.5 pct vs USD, added support. Technical correction from the oversold situation and positive divergence between price and RSI / stochastic were also supportive. Market eroded early following sharply lower CBT soyoil. Prices were 15 lower to 23 higher in the morning and extended gains to 34 higher in the afternoon.

There was some support from bottom pickers on ideas that the downside may be limited from current levels. China Dalian futures were also relatively steady the past few days. The improved export pace also raised the prospect that demand will be better in the coming months especially with reports of low consumers stock. However, fundamentals remain negative with higher production through October and bumper US soyabean crop.

Technical view - prices correcting from the oversold situation. The positive divergence between price and RSI / stochastic may see further gains in the coming days.  Trend down ; RSI 22.59 ( oversold ) ; support 1900 / 1850 / 1800 ; resistance 2000 / 2050 / 2100 / 2163 ; positive divergence between price and RSI ; positive divergence between price and stochastic.

Trading Tips for the Day - 2 September 2014

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 came under another sell down on Friday to close sharply lower for the fourth consecutive week. Selling was prompted by continuing bearish sentiment in the absence of supporting factors. Quiet cash market and ideas of slow demand undermined support. Technical selling as prices broke below 1950 magnified losses. Steady China Dalian futures and CBT soyoil encouraged light support at the opening which found stiff resistance. Prices were 5 higher to 11 lower in the morning and extended losses to 53 lower in the afternoon.

Heavy selling inspite of a 3-day weekend pointed to strong bearish sentiment. There seemed to be selling ahead of the expected poor 1-31 August exports to be reported by the cargo surveyors on 2 September. Lack of supporting factors also kept bears comfortable. Unless demand picks up soon, market may remain under pressure in the coming weeks.

Technical view - prices broke below 1950, continuing the negative trend. Good support seen at 1900. No change in negative indicators.  Trend down ; RSI 16.34 ( oversold ) ; parabolic retriggered a "sell" signal at 1957 ; stochastic oversold ; support 1900 / 1850 / 1800 ; resistance 2000 / 2050 / 2100 / 2163.