FKLI will likely open a little 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 trading day.
For FCPO, market rebounded after eroding to new low since March 2009 to close sharply higher yesterday. Buying was led by short covering on ideas that market is due for correction from oversold situation. Expectation of improving demand in coming months added support. Market eroded in the morning following poor 1-25 August exports and weakness in CBT soyoil and China Dalian futures. Prices were 3 higher to 45 lower in the morning and rose from 19 lower to 46 higher in the afternoon.
Looks more like technical play today. Fundamentals are unchanged and remain negative. The low August exports will point to sharp increase in stocks as production is expected to rise about 15 pct. Bumper US soybean crop and better global oilseeds supply also weigh on sentiment. There is also concern about China's imports in view of financing difficulties. However, prices are relatively low and will attract better demand and bottom picking.
Technical view - it was an outside day today which may see further rebound due to grossly oversold situation. However, indicators remain negative. Trend down ; RSI 22.32 ( oversold ) ; parabolic SAR at 2057 ; stochastic turned up from oversold ; support 1990 / 1955 / 1900 ; resistance 2050 / 2100 / 2163.
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