Monday, October 20, 2014

Trading Tips for the Day - 20 October 2014

FKLI will open higher as Dow Jones closed more than 200 points up on Friday.  For the first trade today, one can attempt to Short 2-4 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 trading day.

For FCPO, market recovered from the past 2 days of losses to close higher Friday. Buying was encouraged by gains in CBT soyoil and a rebound in crude mineral oil. Weekend profit taking and some technical correction from the oversold stochastic added support. Gains were however, checked by easier China Dalian futures. Prices were 9 to 26 higher in the morning and extended gains to 29 higher in the afternoon, holding steady throughout.

Export numbers will be the main factor in the coming weeks. Fundamentally, there are no changes in the weak global vegetable oils outlook. Generally, concerns over slowing demand is undermining support. Bumper US soyabean crop, weak crude mineral oil and slow global economy are also discouraging. However, the prospect of declining production in the coming months may keep a floor under the market around current levels.

Technical view - no change in negative indicators. Prices may move to 2050. Trend down ; RSI 49.35 ; stochastic turned up from oversold ; support 2100 / 2065 / 2000 ; resistance 2150 / 2223 / 2250 / 2300.

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