FKLI will open a little 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 closed yesterday in a slow session. Selling was led by year end profit taking on strong gains the past week. Technical correction from the overbought stochastic added weight. Losses were held by light commercial support as cash sellers were lacking. Market was relatively steady in the morning following firmer CBT soyoil and China Dalian futures. Prices were 4 higher to 9 lower in the morning and eroded to 23 lower in the afternoon.
There are no new factors. Cargo surveyor, SGS' 1-31 December exports were within estimates. Although floods have been receding, it may take days before normal harvest and production can resume. In anycase, December production and stocks are expected to fall substantially from earlier estimates. Quality concerns may also see some reserved sellers in the cash market.
However, weakness in crude mineral oil remains a concern. Question marks are raised whether biodiesel mandates will be met.
Technical view - prices correcting from the overbought stochastic. Good support seen at 2250. Technicals - trend up ; RSI 60.93 ; stochastic turning down from overbought ; support 2250 / 2188 / 2150 / 2100 ; resistance 2308 / 2345 / 2400.
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