FKLI will open a little lower today, for the first trade, one can attempt to Long 1-3 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.
For FCPO, market closed sharply lower yesterday on better sellers in the afternoon. Selling followed rumours of low 1-10 December exports. There was early selling pressure from lower CBT soyoil, China Dalian futures and crude mineral oil. Technical weakness as prices broke below 2150 added losses. Firmer ringgit, which gained about 0.3 pct vs USD, was also negative but largely ignored.
Prices were 3 to 27 lower in the morning and eroded to 52 lower in the afternoon. Market will be looking towards the export numbers from the cargo surveyors and the MPOB November data for incentives tomorrow. Rumoured that the 1-10 December exports will be about 15 pct lower vs a month ago. This will point to slow demand and also raised concerns about higher stocks towards year end. The MPOB data is not expected to have much impact as increasing stocks are expected in both the Reuters and Bloomberg's polls. Meanwhile, weakness in crude mineral oil and easier CBT soyoil may keep the short term trend negative.
Technical view - the break below 2150 continues the negative trend. Prices may test the 2100 support. Trend down ; RSI 40.42 ; parabolic SAR 2208 ; support 2100 / 2083 / 2064 ; resistance 2200 / 2250 / 2286.
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