FKLI will likely open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price. Try get 5 to 7 points profit and out a stop 5 points away from the entry point. Close your position by the end of the day.
Market closed higher on Friday after trading within the previous day's range. Buying was encouraged by steady CBT soyoil and some recovery in crude mineral oil. Short covering for the 3-day weekend and ideas that yesterday's drop was overdone added support. Gains were capped by a quiet cash market and ideas of slow demand. Prices were 5 to 23 higher in the morning and extended gains to 31 higher in the afternoon.
Fresh factors were lacking. Concerns over lower exports in October, record US soyabean crop currently being harvested, and weakness in crude mineral oil will undermine sentiment. Prospects of lower production in the coming months and ideas that prices are currently relatively low will encourage support on dips. Market will be guided by the 1-10 October exports and the MPOB September data in the coming week.
Technical view - prices turned sideways from big drop yesterday. Some indicators are negative and pull backs are sell opportunities. Trend sideways ; RSI 55.39 ; support 2137 / 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300 / 2345.
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