Wednesday, September 24, 2014

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.

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