FKLI will likely open a few points lower, for the first trade today one can attempt to Short at 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 closed higher yesterday after eroding to fresh new low early. Buying was encouraged by better export pace the last few days and higher China Dalian olein and soyoil futures. Weaker ringgit, which lost about 0.5 pct vs USD, added support. Technical correction from the oversold situation and positive divergence between price and RSI / stochastic were also supportive. Market eroded early following sharply lower CBT soyoil. Prices were 15 lower to 23 higher in the morning and extended gains to 34 higher in the afternoon.
There was some support from bottom pickers on ideas that the downside may be limited from current levels. China Dalian futures were also relatively steady the past few days. The improved export pace also raised the prospect that demand will be better in the coming months especially with reports of low consumers stock. However, fundamentals remain negative with higher production through October and bumper US soyabean crop.
Technical view - prices correcting from the oversold situation. The positive divergence between price and RSI / stochastic may see further gains in the coming days. Trend down ; RSI 22.59 ( oversold ) ; support 1900 / 1850 / 1800 ; resistance 2000 / 2050 / 2100 / 2163 ; positive divergence between price and RSI ; positive divergence between price and stochastic.
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