Tuesday, November 4, 2014

Trading Tips for the Day - 4 November 2014

FKLI has opened higher today, for the first trade, 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 FPO, strong run up continued for the 5th consecutive day. Market rose to fill the price gap left on 14 July. Support followed good gains in CBT soyoil and higher China Dalian futures. Weak ringgit, which lost about 0.9 pct vs USD today, also encouraged buying. Short covering magnified gains.

Prices were 3 to 23 higher in the morning and extended gains to 39 higher in the afternoon. The continued strength in CBT soyoil, inspite of a bumper US soyabean crop now in harvest, is adding to the bullish sentiment. Weather concerns in South America is also supportive. An outside factor is the ringgit, which if weaken further, will be positive on prices. Together with seasonally lower production in the coming months, there are better incentives for support.

Technical view - prices continuing the strong uptrend to 2400. The RSI and stochastic are overbought and are due for some downward corrections. trend up ; RSI 73.75 ( overbought ) ; stochastic overbought ; support 2310 / 2265 / 2220 / 2165 / 2100 ; resistance 2345 / 2400 / 2450 / 2511.

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