Tuesday, October 21, 2014

Trading Tips for the Day - 21 October 2014

FKLI will open a few points higher today, for the first trade, 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 price.  Close your position by the end of the day.

For FCPO, market closed lower yesterday following weakness in CBT soyoil and China Dalian futures. Quiet cash market also undermined support. Losses were held by the better than expected 1-20 October exports which showed improved export pace. Prices were 30 to 12 lower in the morning and 21 to 10 lower in the afternoon.

Generally most factors remained negative. The October exports are expected to be lower vs September. Although production is currently projected to be slightly lower, stocks are likely to increase. The good weather in the US will also likely put CBT soybean / soyoil under some harvest pressure. Weakness in crude mineral oil is also negative. Meanwhile there are concerns that the current dry weather in Brazil may see a lower soybean crop than earlier estimated.

Technical view - indicators remain negative with prices continuing within the downtrend channel. Prices may move to 2050.  Trend down ; RSI 47.42 ; support 2100 / 2065 / 2000 ; resistance 2150 / 2223 / 2250 / 2300.

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