Wednesday, December 3, 2014

Trading Tips for the Day - 3 December 2014

FKLI has opened slightly lower.  Today is going to be a volatile day like yesterday.  One can attempt to Short at around 1780 and try take profit of 5-7 points profit.  Put a stop loss 5 points away.  Close your position by the end of the day.

 As for FCPO, market recovered some of Monday's losses. Buying was encouraged by a rebound in crude mineral oil which also carried CBT soyoil higher. China Dalian futures were also traded higher from the limit down prices yesterday. Short covering tied to profit taking, added gains. Ringgit gained about 0.3 pct vs USD but had little effect. Prices were 20 to 34 higher in the morning and held steady to firmer in the afternoon.

Crude mineral oil may remain in focus if its weak trend continues. There are not much changes in palm oil and the global vegetable oils fundamentals. Seasonal decline in production through February provides better incentives for support in the coming months. Lower global supplies of sun oil and rapeseed oil are also supportive. However, the big US soyabean crop and prospect of smaller use for energy are negative.

Technical view - prices are pulling back from big drop the past 3 days. Indicators remain negative.  Trend down ; RSI 41.36 ; stochastic recovered from oversold ; support 2100 / 2064 / 2000 / 1950 ; resistance 2150 / 2200 / 2250 / 2286.

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