Monday, February 23, 2015

Trading Tips for the Day - 23 February 2015

FKLI will likely open higher today.  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, steady CBT soyoil and strong gains in crude mineral oil carried market higher on Wednesday, in a half day session. Support also came from some covering ahead of the 4-day Lunar New Year weekend. The weaker ringgit, which lost about 0.3 pct vs USD today, was also supportive. Prices rose 3 to 26 higher before closing around mid range.

Market continued to trade sideways in the absence of fresh incentives. Some forecast of improving production and slow demand are undermining sentiment. Talks of exports improving in the 2nd half of February are supportive, together with the stabilization in crude mineral oil price.

Think market will look towards the effect of Indonesia's biodiesel subsidies in the coming weeks for incentives. Technical view - prices continued to consolidate within a 2270 - 2350 trading range.  Trend sideways ; RSI 53.94 ; support 2270 / 2216 / 2148 / 2100 ; resistance 2355 / 2395 / 2450 / 2510 .

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