Wednesday, October 8, 2014

Trading Tips for the Day - 8 October 2014

FKLI will likely open lower today after Dow Jones fell more than 200 points overnight.  For the first trade today, one can attempt to Long 2-4 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 extended gains today following sharply higher CBT soyoil over the 3-day weekend. Gains were however, capped by weakness in crude mineral oil and the Reuters poll on September data which kept stocks about unchanged. Firmer cash market was also supportive. Prices were 35 to 22 higher in the morning and 28 to 7 higher in the afternoon.

There was some cautiousness as market look towards resumption of trading in China Dalian tomorrow after the one week holiday, export numbers by the cargo surveyors for 1-10 October, and the MPOB September data on 10 October. Reuters poll today was slightly negative as most expectations earlier are for some drop in stocks. In anycase, we think demand prospects will be the primary factor in the coming weeks.

Technical view - prices are sideways in a 2220 - 2140 range. Trend sideways ; RSI 56.83 ; parabolic SAR at 2220 ; support 2137 / 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300 / 2345.

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