Thursday, November 27, 2014

Trading Tips for the Day - 27 November 2014

FKLI will likely open near yesterday's close, for the first trade today, 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 closed higher yesterday on good support late in the session. Buying was tied to positive sentiment and expectations that market analysts at a conference in Indonesia will maintain their earlier positive outlook. Market was erratic early with firmer CBT soyoil and China Dalian futures supporting. But a weaker close in China Dalian futures prompted some selling in the early afternoon. Lower crude mineral oil also undermined support. Prices were 10 higher to 6 lower in the morning and 11 lower to 26 higher in the afternoon.

Market will be looking towards the Indonesian conference, starting tomorrow, for some incentives. It is likely that the market analysts will maintain their forecast for higher prices in the coming months although current weakness in crude mineral oil may be of some concern. Generally, sentiment is expected to follow the seasonal strength of lower production through February. However, the prospect of higher end November stocks may bring some cautiousness.

Technical view - prices are moving back into the sideway trading range. An effective break above 2300 or below 2180 may see the next major move.  Trend sideways ; RSI 53.13 ; support 2187 / 2165 / 2100 ; resistance 2286 / 2345 / 2400.

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