FKLI will likely open lower, 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, market eroded to 2-week low yesterday. Selling followed continuing big drop in crude mineral oil, which traded about USD1.50 lower in Asian trade. Lower CBT soyoil and China Dalian futures added weight. Technical sell stops below 2150 magnified losses. Reports of sharply lower Southern POMA 1-15 December production were ignored. Prices gapped 20 to 35 lower in the morning and eroded to 57 lower in the afternoon.
Negative outside factors dominated sentiment yesterday. Crude mineral oil continued to show weakness, China's manufacturing sector contracted in December with PMI falling to 49.5, Russia hiked key interest rate by 6.5 pct to 17 pct to support her rouble, Asian equities market continued to erode and forecast of weak global economy etc. However, palm oil fundamentals are supportive with sharply lower production in December and likelihood of lower stocks.
Technical view - the break below 2150 was slightly negative and may carry prices to test 2100 support. Trend sideways ; RSI 40.70 ; parabolic SAR at 2100 ; support 2100 / 2083 / 2064 / 2000 ; resistance 2155 / 2216 / 2250 / 2286.
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