Monday, November 10, 2014

Trading Tips for the Day - 10 November 2014

FKLI will likely open near Friday's closing, for the first trade today, one can attempt to Short 1-3 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 day.

As for FCPO, Strong selling on Friday afternoon closed market lower for the 4th consecutive day. Selling was led by protection against the MPOB October data on Monday and estimates of lower 1-10 November exports. Long liquidation and technical considerations added weight. Similar to yesterday, market was supported in the morning following higher China Dalian futures and weaker ringgit, which lost about 0.3 pct vs USD. Prices were 30 to 13 higher in the morning and eroded to 29 lower in the afternoon.

Market is correcting from the very strong run up last week, which now seems to be not backed by fundamentals. The MPOB is expected to report higher end October stocks on Monday. Of more importance will be exports, where most estimates are lower against a month ago. However, lower production and the likelihood of floods in the coming months are supportive.

Technical view - the break below 2200 is negative. Prices may drop to 2100.  Trend s/t down ; RSI 48.84 ; parabolic triggered a "sell" signal below 2209 ; stochastic oversold ; support 2193 / 2165 / 2100 ; resistance 2250 / 2300 / 2345 / 2400.

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