FKLI will open a few points higher, for the first trade today, 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.
For FCPO, market failed to hold early gains and closed lower yesterday. Selling was led by bearish sentiment in the absence of fresh factors. Weakness in CBT soyoil and soyabean, amid bearish fundamentals, continued to add weight. There was light support early from the technically oversold situation and reports of increased July imports by India. Prices were 14 higher to 7 lower in the morning and eroded to 24 lower in the afternoon.
The continuing good weather in USA and the USDA estimate of record high soyabean crop as well as an increase in world ending stocks are negative. Together with increasing palm oil production in the coming months, they are all likely to keep sentiment bearish in the coming week. However, there are prospects that consumers may start to replenish stocks as prices are relatively low. Increasing use for biodiesel may also lend support.
Technical view - no change in negative indicators. Prices may move to the 2013 low of 2137. Any correction from the oversold situation is a sell opportunity. Trend down ; RSI 26.01 ( oversold ) ; parabolic SAR at 2230 ; stochastic oversold ; support 2162 / 2135 / 2100 / 2050 ; resistance 2200 / 2250 / 2300 / 2345 ; open interest increasing.
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