Trading Tips for the Day - 2 June 2015

FKLI will 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 soared to highest level since 9 March. Strong buying surfaced from opening, following big rise in CBT soyoil. Higher China Dalian futures and continued weakness in ringgit, which lost
about 0.5 pct vs USD, added support. Sentiment was also underpinned by reports that Indian monsoon rains will be delayed. The 1-31 May exports showed much slower export pace the last
few days but had little effect. Prices gapped 37 to 53 higher in the morning and continued the climb to 81 higher in the afternoon.

Market is currently showing bullish sentiment. In view of current big discount of palm oil to soyoil, the sharp rise in CBT soyoil, attributed to prospect of increase use for biodiesel, was a strong boost. Uncertainty over the Indian monsoon and possibilty of El Nino weather also add to the positive sentiment. However, exports the last week of May have waned and market will need strong exports to continue the up trend.

Technical view - the break upwards confirmed an inverted head and shoulder formation. Prices may move to 2400. Ringgit ~ 3.6810 / 3.6860 vs USD.  trend up ; RSI 68.23 ; stochastic overbought ; support 2250 / 2225 / 2150 / 2120 / 2070 ; resistance 2300 / 2320 / 2350 / 2400. 

In other news...

The dollar strengthened against rivals, pushing to a new 12-year high against the yen after solid manufacturing data provided further evidence that the U.S. economy is emerging from its slump and boosted expectations for higher borrowing costs before the end of the year.

🇺🇸 ISM’s manufacturing purchasing managers index rose to 52.8 in May, after holding steady at 51.5 in March and April. Economists had anticipated last month’s PMI to tick higher to 51.8.

🇺🇸 U.S. stocks drifted higher in quiet trading, ahead of a busy week of data. Investors are concern about the economy’s health and uncertainty over when the Federal Reserve will start to raise interest rates.

€ European stocks close mixed as investors remain worried about Greece’s ability to secure a financing deal with its international creditors. Signs of strength in the European economy overshadow Greek debt concerns. Data from Markit Economics showed Italy's May manufacturing PMI rose +1.0 to 54.8, a 3-1/2 year high, and Spain's May manufacturing PMI climbed to 55.8 from 54.2, both above expectations.

🇨🇳 China's Shanghai Composite up +4.71% after a gauge of Chinese manufacturing data expanded for a third month.

🇨🇳 The China May manufacturing PMI rose +0.1 to 50.2, weaker than expectations of +0.2 to 50.3.

⛽ Oil prices edged lower as the dollar strengthened, and traders postponed betting on the market until the world’s oil cartel holds its semiannual meeting at the end of the week.

👑 Gold prices fell, after the dollar resumed its rally and outweighed support from lackluster U.S. economic data. Now, $1188.70.

🌴 FCPO (RM2,295) closed sharply higher level since March 9. Strong buying at opening in tandem with the China Dalian Futures and Soyoil. The 1-31 May exports showed much slower export for the last few days but had little effect. Market is currently showing bullish sentiment as big discount of palm oil to Soyoil, increase use of biodiesel, uncertainty over Indian monsoon and possibility of El-Nino weather also added support. However, market need a strong export to continue the uptrend.