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, market eroded sharply for the 3rd consecutive day to its lowest level since 30 January. Selling was tied to technical weakness and lack of supporting factors. Pressure came from sharply higher MPOA production estimates for March vs the Bloomberg and Reuters polls. Lower China Dalian futures and e-CBt soyoil also weighed on sentiment. Prices eroded 6 to 35 lower in the morning and extended losses to 48 lower in the afternoon.
The almost 10 pct higher March production estimated by MPOA vs the Bloomberg and Reuters polls points to higher stocks in the MPOB data tomorrow. Stocks may continue to increase in the coming months unless exports improve from the slow pace these past 3 months. The 1-10 April exports were rumoured to be higher vs a month ago but considered to be average. Meanwhile, the absence of news on the proposed Indonesian CPO export levy probably resulted in some long liquidation pressure today.
Technical view - the break below 2150 turned indicators negative. Prices may move to 2100. Trend down ; RSI 39.41 ; parabolic triggered a "sell" signal at 2143 ; 5-day MA intersected 20-day MA from above ; support 2100 / 2080 / 2050 ; resistance 2165 / 2205 / 2250 / 2280 .
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