FKLI will likely open a few points higher, 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 point. Close your position by the end of the day.
As for FCPO, market rose to its highest level in nearly 3 weeks yesterday on firmer cash market and better sentiment. Technical considerations and short covering as prices rose above 2200 added gains. Reports by Southern POMA of lower 1-25 October production was also supportive. Fresh sellers were lacking. Lower CBT soyoil had little effect. Prices were 5 to 28 higher in the morning and rose to 50 higher in the afternoon.
Sentiment was also boosted by reports that Malaysia will increase its biodiesel mandate from 5 pct to 7 pct in stages from November onwards. The prospect of coming monsoon rains disrupting production and the seasonally declining production in the coming months were also supportive.
However, the likelihood of stocks increasing in October and bigger global vegetable oils supplies are negative and will check gains.
Technical view - the rise above 2200 is positive. An effective break above 2223 will extend the upside to 2300. Trend sideways to higher ; RSI 60.75 ; parabolic triggered a "buy" signal above 2194 ; stochastic slightly overbought ; 5-day MA intersected 20-day MA from below ; macd intersected trigger line from below ; support 2140 / 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300.
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