FKLI will likely open 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.
As for FCPO, strong selling in the afternoon yesterday closed market at fresh new low since 9 October 2009. Selling was prompted by lack of supporting factors and concerns over increasing production and stocks in the coming months. Prospect of very good weather in the US continuing for the current soyabean crop also undermined sentiment. Late rumours of better pick up in exports the last 5 days had little effect. Prices were 10 higher to 4 lower in the morning and eroded to 22 lower in the afternoon.
Absence of positive development continued to keep bears comfortable and in control. Nearby factors point to weak trend continuing. Production and stocks will likely increase in the coming months. Bumper US soyabean crop seems assured with good weather and improved crop ratings by USDA in its weekly crop progress report. However, current prices are attractive to induce greater demand, including for fuel and biodiesel.
Technical view - weak trend continued. The increasing open positions pointed to the shorts maintaining. Prices may drop to 2000. The RSI and stochastic remain oversold and some upward correction is due. Trend down ; RSI 17.25 ( oversold ) ; parabolic SAR at 2144 ; stochastic oversold ; support 2050 / 2000 / 1950 ; resistance 2100 / 2163 / 2200 / 2250 ; open interest increasing.
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