FKLI will likely open very near to yesterday's close, for the first trade today, one can attempt to Short 1-3 point 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, erratic market yesterday with prices closing higher after falling near to one month low early. There was good support early following strong gains in CBT soyoil and slightly better than expected 1- 25 November exports. Reports of higher 1-20 November production by MPOA prompted strong selling. Lower China Dalian olein futures and technical sell stops below 2200 magnified losses. Gradual recovery came in the afternoon as sentiment towards seasonal strength took over. Prices were 15 higher to 18 lower in the morning and 18 lower to 18 higher in the afternoon.
The higher MPOA production report was a surprise. Full November month production may now be only slightly lower vs October considering some floodings currently affecting the east coast states. This will result in higher end November stocks, contrary to earlier expectations. However, expect seasonal strength to dominate sentiment in the coming months as production declines amid the prospect of floodings due to current rainy weather.
Technical view - the good recovery from below 2200 is slightly positive. Trend sideways ; RSI 49.52 ; support 2187 / 2165 / 2100 ; resistance 2286 / 2345 / 2400.
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