Wednesday, September 17, 2014

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.

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