Monday, September 29, 2014

Trading Tips for the Day - 29 September 2014

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.

Weekend profit taking closed market lower today in choppy trading. However, benchmark price as sharply higher for the 4th consecutive week. Selling was also tied to protection against market outlook from the Globoil Conference in India this weekend. Slightly easier CBT soyoil and China Dalian futures also undermined sentiment. Prices were 21 lower to 6 higher in the morning and 4 higher to 21 lower in the afternoon.

The strong exports and lower September production vs August have changed market outlook. Any reduction in September end stocks will be supportive as production historically tapers from November. Full September exports will be closely followed in coming week. Meanwhile attention will also be drawn towards the Globoil Conference for some incentives.

Technical view - no change in positive indicators. Prices correcting from strong gains the last few days.  Trend up ; RSI 60.25 ; parabolic SAR at 2116 ; stochastic overbought ; support 2150 / 2065 / 2000 / 1950 ; resistance 2210 / 2250 / 2300 / 2345.

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