Tuesday, October 14, 2014

Trading Tips for the Day - 14 October 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.

Market closed at one week low today on late sell down. Selling followed quiet cash market which gave ideas of slow demand. Erosion in CBT soyoil, crude mineral oil and easier China Dalian futures also undermined sentiment. USDA supply - demand reports showed no surprises. Prices were 10 higher to 11 lower in the morning and eroded to 30 lower in the afternoon.

There are no changes in fundamentals. The lower 1-10 October exports and higher end
September stocks reported by MPOB will undermine support. Sentiment may also be undermined by the weakness in crude mineral oil, which can affect demand from the fuel sectors, and confirmation of bumper US soyabean crop by USDA. However, prospects of lower October production and historically strong first quarter prices may limit the downside.

Technical view - prices continue to trade within the 2220 - 2140 sideway range with slightly negative bias. Trend sideways ; RSI 51.62 ; parabolic SAR at 2141 ; support 2137 / 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300 / 2345.

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