FKLI will likely open a little 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 closed sharply lower yesterday, giving back strong gains of the last few days. Selling was prompted by the lack of news on the export levy that Indonesia is proposing to introduce. Easier CBT soyoil and China Dalian futures also undermined sentiment. Technical sell stops as prices broke below 2190 added weight. Prices were 3 to 22 lower in the morning and dropped further to 42 lower in the afternoon.
The absence of fresh factors may see further pull back towards the 2150 level. Generally, there are no changes in fundamentals. End March stocks were estimated to be about unchanged against a month ago. Production is expected to increase gradually in the coming months. There is concern of some slow down in exports in April due to the export tax and GST. South America is on track to produce record high soyabean crop.
Technical view - the big pull back turned indicators neutral. Prices may move into a wide trading range of 2250 - 2150. Trend up ; RSI 44.33 ; parabolic SAR at 2143 ; support 2145 / 2100 / 2080 / 2050 ; resistance 2205 / 2250 / 2280 / 2320.
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