Friday, January 16, 2015

Trading Tips for the Day - 16 January 2015

FKLI will likely 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 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market rose to a fresh new high since 11 July before giving back some gains towards close. Buying was tied to continuing concerns over lower production and supplies in the coming weeks following the recent bad floods. Higher CBT soyoil and crude mineral oil also underpinned sentiment. Gains were however, capped by strong gains in the ringgit, which rose about 0.8 pct vs USD, and low 1-15 January exports. Prices were 12 to 31 higher in the morning and extended gains to 50 higher before closing around mid range.

The picture is not clear on the extent of damage to supply by the recent very bad floods, which may be shifting to East Malaysia. Quality problems are also a concern. In anycase, nearby supplies are low and will be supportive. However, bullishness may be checked by the big supply of soyabean and weakness in crude mineral oil.

Technical view - the rise to a new high is positive. An effective break above 2400 may carry prices to 2510.  Trend up ; RSI 66.84 ; parabolic SAR at 2328 ; support 2310 / 2237 / 2200 / 2150 ; resistance 2400 / 2435 / 2510.

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