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%.
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