Wednesday, January 21, 2015

Trading Tips for the Day - 21 January 2015

FKLI will likely open very near to yesterday's close, for the first trade, one can attempt to Long 1-3 points below 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 higher yesterday after trading on either sides of the previous day's close. Poor 1-20 January exports, easier China Dalian futures and lower e-CBT soyoil prompted selling early. Erosion in crude mineral oil, which lost about USD1.40 in Asian trade also undermined sentiment. Weak ringgit, which lost more than 1 pct vs USD today, and worsening floods in Sarawak encouraged support most of the session. Prices were 12 lower to 11 higher in the morning and 37 to 8 higher in the afternoon.

Floods remain a major factor as they will amplify the seasonal drop in production in January - February. Together with the prospect of further weakness in the ringgit, after Malaysia revised the 2015 Budget and economic targets amid the low crude mineral oil price, they will encourage support. However, demand is a concern with very poor exports for 1-20 January. The approaching harvest of the South American soyabean crop will also add pressure.

Technical view - prices are moving into a sideway trading range of 2250 - 2400.  Trend sideways ; RSI 56.83 ; stochastic oversold ; macd intersects trigger line from above ; support 2298 / 2237 / 2200 / 2150 ; resistance 2355 / 2395 / 2435 / 2510.

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