Tuesday, September 2, 2014

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.

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