Monday, January 26, 2015

Trading Tips for the Day - 26 January 2015

FKLI will likely open slightly 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 lower for the 3rd consecutive day after late buying strength was met by stronger weekend liquidation. With the lower CBT soyoil and China Dalian futures, BMD was under pressure from the opening. However, early afternoon weakness was not sustained and market rebounded to make the day's high before coming off again at the close. Prices were 5-21 lower in the morning and 2-24 lower in the afternoon.

With new factors lacking, market continued to slide and correct from recent gains. This weakness is aided by slipping CBT soyabean / soyoil on stronger USD and forecasts of record soyabean crops. More attention may be focused on crude oil with the passing of Saudi Arabia's King Abdullah. Nevertheless, improved palm oil demand will be of utmost importance if market is to check this down trend.

Technical view - prices remain on downtrend. However, it may be due for some pullbacks as short-term market is oversold as indicated by stochastic. Trend down ; RSI 42.59 ; stochastic oversold ; support 2200 / 2150 / 2100 ; resistance 2300 / 2355 / 2395 / 2435.

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