Thursday, September 18, 2014

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.

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