Thursday, September 25, 2014

Trading Tips for the Day - 25 September 2014

FKLI will likely open higher today after Dow Jones snapped a 2 day triple digit loss.  For the first trade, 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 extended gains yesterday with good support in the afternoon. Buying was encouraged by MPOA report of more than 12 pct drop in 1-20 September production vs a month ago. Higher CBT soyoil and China Dalian futures added support. Fresh sellers were lacking. Prices were 3 lower to 15 higher in the morning and rose gradually to 31 higher in the afternoon.

There are no new factors. A lower September production vs August, last seen in 2010, will raise the prospect of production tapering off in the coming months. This may see stocks depleting if exports maintain the current good pace. Increased use for fuel and biodiesel, including the higher biodiesel mandates in Brazil and Argentina using soyoil as feedstock, is also positive. However, bigger global vegetable oils supplies, in light of record US soyabean crop, may cap the upside.

Technical view - the strong close kept indicators positive. Prices continued to rise within the up trend channel towards 2250.  Trend sideways ; RSI 58.89 ; parabolic SAR at 2079 ; support 2065 / 2000 / 1950 ; resistance 2173 / 2200 / 2250.

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