FKLI will likely open a little lower, 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.
Market closed lower yesterday after an erratic trading session. Selling followed erosion in CBT soyoil and absence of fresh supporting factors. Technical correction from the overbought stochastic added weight. There was light support in the early afternoon, led by speculative buying, which did not follow through. Prices were 23 to 4 lower in the morning and 6 higher to 28 lower in choppy afternoon trading.
The slower export pace in the last 5 days of September probably dented bullish enthusiasm. There are concerns that October exports may be lower especially with the China market on a one week holiday. Sentiment was also affected by weakness in CBT soyoil / soyabean which discounted the low stocks and placed more emphasis on harvest pressure. Think October production will be closely watched after September production was reportedly lower.
Technical view - prices correcting from the overbought situation in the stochastic. Prices held within the up trend channel, keeping indicators positive. trend up ; RSI 60.62 ; parabolic SAR at 2162 ; stochastic overbought ; support 2150 / 2065 / 2000 ; resistance 2250 / 2300 / 2345.
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