Trading Tips for the Day - 24 July 2015

FKLI will open lower for today.  For the first trade, one can attempt to Short 1-3 points above 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 extended losses to a second day following weakness in related outside markets. CBT soyoil, China Dalian futures and crude mineral oil were all lower. Losses were however, held by the lower 1-20 July production reported by MPOA and weaker ringgit which lost about 0.4 pct vs SD. Prices were 19 to 5 lower in the morning and remained easier throughout the afternoon.

The lack of fresh factors kept market sideways in narrow range trading yesterday. The approaching peak production months in August - October usually results in lower markets, especially with tocks now above 2 million tonnes. Improved weather for the US soyabean crop is also negative. However, concerns over the forecast of El Nino weather and the existing big discount to soyoil may limit the downside. Smaller global rapeseed and canola supplies are also supportive.

Technical view - prices continued to trend sideways, keeping indicators unchanged.  Trend down ; RSI 43.50 ; support 2165 / 2130 / 2070 / 2000 ; resistance 2230 / 2285 / 2330.

In other news...

U.S. oil prices sank into a bear market as a global glut of crude shows little sign of abating. An unexpected increase in U.S. crude inventories, combined with high production already coming from the OPEC, is raising concerns that the market is settling into a long period of oversupply.
* Crude oil $48.45 (-0.74)
* Brent crude $55.27 (-0.86)

🇯🇵 Gold prices carved out a slight gain, interrupting 10 consecutive days of declines, as a weaker dollar and lower prices lured buyers back into the market. Now, $1089.65.

🇺🇸 The Dow industrials slumped Thursday following disappointing earnings reports from a handful of big U.S. companies. Weak results from heavy-equipment manufacturer and economic bellwether Caterpillar (-3.6%) weighed down the blue-chip index. Downbeat reports from American Express (-2.5%) and manufacturer 3M (-3.8%) also dented the benchmark.

€ European stocks closed mixed. Technology stocks gained in pre-market trading, led by a 13% surge in SanDisk after it reported Q2 profit that was nearly double consensus. Also, an increase in M&A activity is giving the market a lift with Cigna up 7% in pre-market trading after people familiar with the matter said Anthem is nearing a deal to buy Cigna for $48 billion.

€ European bank stocks rose, led by a 6% jump in Credit Suisse Group AG, after it reported better-than-expected earnings results.

📝 Representatives of Greece's creditor institutions will meet in Athens on Friday to hold formal negotiations on a new bailout after the Greek parliament passed a second round of reforms needed for a bailout. A Greek government official said decisions about reopening the Athens Stock Exchange and Greek financial markets will be deferred to next week.

🇯🇵 The Japan Jun trade balance narrowed to a -69.0 billion yen deficit from a downward revised -217.2 billion yen deficit in May, weaker than expectations of a +45.8 billion yen surplus.

🇨🇳 Chinese shares notched their sixth straight session of gains Thursday as Beijing-backed funds and buying by large shareholders appeared to support the market’s rebound, according to analysts.

🇨🇳 The IMF said it wants more financial-system overhauls from China as Beijing pushes for the IMF to label the yuan a reserve currency.

🌴 FCPO (RM2,189) extended losses to close lower following weakness in related outside markets. CBT Soyoil, China Dalian futures and crude mineral oil were all lower. The lack of fresh factors kept market sideways in narrow range trading.