Tuesday, September 9, 2014

Trading Tips for the Day - 9 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.

As for FCPO, good support continued yesterday. Market closed higher after choppy trading in the afternoon. There was good support in the morning following higher CBT soyoil. Ideas that market may have seen the lows encouraged buying, led by short covering. However, weak fundamentals provided resistance and checked gains. Prices rose 16 to 43 higher in the morning and were 32 to 2 higher in the afternoon.

There was no new factor. The zero export duty for September and October gave good reason for support after very sharp drop since July. This raised expectations for increased exports and for use in the fuel sectors. However, most fundamentals remain negative with higher production through October, record high US soyabean crop under excellent weather, bigger global oilseeds supplies, and better Indian monsoon.

Technical view - short term trend is positive. The overbought situation indicated in the stochastic may see some downward correction which should be a buy opportunity.  Trend up ; RSI 42.27 ; stochastic overbought ; support 2000 / 1950 / 1914 ; resistance 2100 / 2163 / 2200.

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