FKLI will likely open lower 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 closed lower for the 6th consecutive day following erosion in CBT soyoil and lower China Dalian futures. Rumours of lower 1-30 April exports vs March added weight. Losses were held by the technically oversold situation indicated in the stochastic and light profit taking ahead of the upcoming 4-day weekend. Prices were 23 lower to unchanged in the morning and traded choppily within this range in the afternoon.
Market is looking at lower export numbers for April to be reported by the cargo surveyors tomorrow. With forecast of higher production in April, stocks are likely to increase. However, erosion in the market the past few days had probably built in the larger supplies. Considering the current relatively low prices, market will be sensitive to positive news.
Technical view - negative indicators and downtrend continued. The oversold indication in the stochastic may see some upward correction which will be a sell opportunity. Trend down ; RSI 34.58 ; stochastic 1915 ; resistance 2100 / 2150 / 2200 / 2250.
As for other news...
U.S. first quarter GDP showed an increase of 0.2%, a sharp slowdown from the fourth quarter's 2.2% pace and below expectations of 1% growth.
Following a two-day meeting, the Federal Reserve offered no changes to its zero interest rate policy following weak first-quarter gross domestic product (GDP) data. The Fed's April statement also removed all calendar references and showed no new guidance on the timing of the rate hike.
U.S. stocks closed lower after data showed a sharp slowdown in the pace of U.S. economic growth in the first quarter, suggesting a deeper early-year slowdown than previously anticipated.
The dollar tumbled toward its biggest one-day decline against the euro in more than a month, as a lackluster reading on U.S. growth sowed more doubts about the prospect of higher interest rates this year.
€ European equities tumbled as investors reacted to sharp gains in the euro against the dollar and awaited the outcome of a two-day meeting of the U.S. Federal Reserve.
€ The Eurozone Apr business climate indicator unexpectedly rose +0.09 to 0.32, stronger than expectations of -0.03 to 0.20 and the highest in 11 months.
€ Eurozone Mar M3 money supply rose +4.6% y/y, stronger than expectations of +4.3% y/y and the most in 5-3/4 years.
The German DAX fell as much as 3.1% in afternoon trade, after the euro rallied to $1.11, after weaker than forecast U.S. first quarter economic data.
U.S. crude settled at the highest level since Dec. 11 after government data showed the first crude stock draw in five months at the U.S. Cushing, Oklahoma hub suggested an oil glut may be starting to ease. Also, EIA reported a smaller-than-expected rise last week in crude inventories throughout the U.S. .
Gold fell after the U.S. Fed signaled it was taking a meeting-by-meeting approach on when to raise interest rates for the first time since 2006.
FCPO (RM2,082) closed lower for the 6th consecutive days. Selling in tandem with the Soyoil and China Dalian futures. Rumours on lower 1-30 April exports also added pressure. Indicator remain negative, however, indicator of oversold at stochastic may see some upward correction.
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