Trading Tips for the Day - 3 October 2014

FKLI will likely open very near to yesterday's closing price.  For the first trade today, one can attempt to Long 1-3 points below the opening price, try get 5-7 points and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Market closed sharply lower today on strong selling in the afternoon. Selling was prompted by big drop in crude mineral oil, which lost more than USD2.00 in Asian trade. Stronger ringgit vs USD, gaining more than 0.6 pct, added weight. Technical selling as prices broke below the up trend channel magnified losses. Market was supported in the morning following strong gains in CBT soyoil. Prices were 16 higher to unchanged in the morning and eroded to 58 lower in the afternoon.

Weakness in crude mineral oil and stronger ringgit today added to concerns over slower demand in the coming months. Historically, market also trends slightly negative during the China National Day holiday week due to quiet conditions from the Chinese interest. Think export demand and production in October will be crucial to market direction and closely monitored. Current outlook is slightly negative.

Technical view - prices corrected further from the overbought stochastic. The break out of the up trend channel and below 2150 turned some indicators negative. Prices may erode to 2050.  Trend turning sideways ; RSI 52.30 ; parabolic triggered a "sell" signal at 2162 ; stochastic turned down from overbought ; support 2100 / 2065 / 2000 ; resistance 2223 / 2250 / 2300 / 2345.