Thursday, September 4, 2014

Trading Tips for the Day - 4 September 2014

FKLI will likely open at near yesterday's closing price.  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 day.

As for FCPO, market extended gains yesterday as lower opening found good support. Buying followed steadiness in China Dalian olein futures and ideas that the downside may be limited. Continued technical correction from the oversold situation added support. Sentiment was also underpinned by the improved export pace the last few days of August and prospects of increased use for biodiesel. Market was lower early following easier CBT soyoil. Prices were 12 lower to 33 higher in the morning and held steady in the afternoon.

There seemed to be ideas that market is now at the lows, and that all bearish factors have already been factored into the market. There is no dispute that production will be higher in the coming months and the US will have record high soyabean production under the current excellent weather. However, there are signs of improving demand, including from the fuel sector. The reports of increased biodiesel mandate in Brazil is positive.
Technical view - prices continued to correct from the oversold situation. The positive divergence between price and RSI / stochastic points to further upside.  Trend down ; RSI 28.58 ( oversold ) ; parabolic SAR at 2039 ; support 1915 / 1850 / 1800 ; resistance 2000 / 2050 / 2100 / 2163 ; positive divergence between price and RSI ; positive divergence between price and stochastic.



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