Thursday, October 16, 2014

Trading Tips for the Day - 16 October 2014

FKLI will likely open lower today, for the first trade, 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.

For FCPO, market eroded to a 3-week low yesterday following easier CBT soyoil and continued weakness in crude mineral oil. Technical selling as prices broke below 2137 added losses. Weaker ringgit, which lost about 0.3 pct vs USD today, helped to limit losses. The 1-15 October export numbers were as expected but deemed to be slightly negative. Prices were 5 to 25 lower in the morningand extended losses to 52 lower in the afternoon. Prompt October went off board without trading.

Supporting factors are lacking. Fundamental outlook is negative. The lower exports vs a month ago pointed to slower demand. Weakness in crude mineral oil raised concerns of smaller usage from the fuel sector. Adding weight is the current bumper US soyabean crop. However, the prospect of lower October production is supportive. Sentiment may also be boosted by historically high prices in January-March each year.

Technical view - prices broke below 2137 turning indicators negative. Prices may move to 2050. Trend down ; RSI 47.29 ; parabolic triggered a "sell" signal at 2143 ; 5-day MA intersected 20-day MA from above ; macd intersected trigger line from above ; stochastic oversold ; support 2100 / 2065 / 2000 ; resistance 2150 / 2223 / 2250 / 2300 / 2345.

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