Tuesday, December 9, 2014

Trading Tips for the Day - 9 December 2014

FKLI will open lower 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 point away from your entry point.  Close your position by the end of the trading day.

For FCPO, weakness in the ringgit, which lost more than 0.8 pct vs USD, carried market higher early. Late selling closed market about unchanged. Early support was also encouraged by higher CBT soyoil and China Dalian futures. Gains were capped by erosion in crude mineral oil which fell USD 0.70 - 0.90 in Asian trade. Protection against negative MPOB data for November to be reported on 10 December, saw better selling late in the session. Prices gapped 13 to 32 higher in the morning and eased steadily lower in the afternoon.

Fresh incentives were lacking. Market was trading on outside factors today with the weak ringgit being balanced by weak mineral oil. MPOB November data is expected to report higher stocks but estimates of lower production gives forecast of stocks declining in coming months. USDA supply - demand report on 10 December is also likely to show a record high soyabean crop but demand, especially from China, has been robust. In anycase, expect the short term trend to be negative.

Technical view - prices did not break the 2200 resistance, keeping trend negative.  Trend down ; RSI 45.94 ; parabolic SAR 2208 ; support 2150 / 2100 / 2064 ; resistance 2200 / 2250 / 2286.

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