Monday, December 8, 2014

Trading Tips for the Day - 8 December 2014

FKLI will likely open lower, 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 FCPO, market closed slightly higher Friday after trading on either sides of the previous day's close.  Trading was erratic with prices doing almost a full circle. There was support at the opening following a weak ringgit which lost about 0.7 pct vs USD. Lower China Dalian futures and crudemineral oil capped gains. Bloomberg's poll of sharply higher end November stocks pressured market lower. Late weekend short covering saw some recovery towards close. Prices were 11higher to 12 lower in the morning and 13 lower to 7 higher in the afternoon.

Prospects of typhoon hitting Philippines and rising lauric oils prices in coming days probably underpinned sentiment. Forecast of continuing weakness in the ringgit added support. However, there are no changes in the short term negative fundamentals. Both Bloomberg and Reuters pollsshowed sharply higher stocks are expected in the MPOB November data on 10 December. USDA is also likely to report large soyabean supplies in their supply-demand reports also on 10 December. No end in sight yet on weakness in crude mineral oil. Unless export demand improves, downside prospects are better.

Technical view - prices continue to hold the 2100 - 2200 trading range.  Trend down ; RSI 46.08 ; parabolic SAR 2219 ; support 2150 / 2100 / 2064 ; resistance 2200 / 2250 / 2286.

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