FKLI will likely open a little higher, for the first trade today, 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 trading day.
For FCPO, market broke 2000 on Friday, closing at its lowest level since July 2009. Selling was tied to continuing bearish sentiment and absence of supporting factors. Talks of defaults as the market fell sharply since July added pressure. Long liquidation magnified losses. Steady China Dalian olein and soyoil futures had little effect except providing a better opening. Prices were 5 higher to 10 lower in the morning and eroded to 50 lower in the afternoon.
Lack of weekend short covering inspite of big drop this week points to bears dominating. Fundamental outlook remains negative with possibility of default adding to demand concerns. Exports for 1-25 August and full month August are likely to be below July levels. However, current prices should be attractive to induce better demand especially from India which is facing a weak monsoon. Technical view - indicators continue negative. The very sharp drop this last 2 weeks keep market grossly oversold and some upward correction is overdue. Trend down ; RSI 13.32 ( oversold ) ; parabolic SAR at 2083 ; stochastic oversold ; support 1990 / 1950 / 1900 ; resistance 2050 / 2100 / 2163.
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