Monday, September 8, 2014

Trading Tips for the Day - 8 September 2014

FKLI will likely open a few points 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.

For FCPO, market closed mixed with nearbys higher but forwards lower. News of zero CPO export duty for September and October encouraged buying especially in the September and October positions. Higher CBT soyoil and China Dalian futures were also supportive. Concerns over higher production and increasing stocks in the coming months capped gains while prompting selling on rallies. Weekend profit taking added pressure. Prices were 11 higher to 23 lower in the morning and 7 higher to 35 lower in the afternoon.

Sentiment was lifted by the prospect of better export demand with announcement of zero export duty, which may extend to December. Together with the current relatively low price, some rebound from the sharp drop the past one month will not be surprising. However, the market is entering the high production months in August - October, and together with expectations of record high US soyabean crop, fundamentals are negative. MPOB data for August and the export numbers will be followed next week.

Technical view - prices moved into consolidation within a 2050 - 1915 range. Trend down ; RSI 38.53 ; parabolic triggered a "buy" signal at 2034 ; support 1950 / 1914 / 1850 ; resistance 2050 / 2100 / 2163 ; open interest increasing.


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