FKLI will likely open lower today, for the first trade, 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 eroded to one week low today after a higher opening found strong sellers. Selling was tied to ideas of slow demand. Estimates are for lower 1-25 November exports to be reported by cargo surveyors tomorrow. Firmer ringgit also undermined sentiment early. Steadiness in CBT soyoil, China Dalian futures and crude mineral oil gave little effect. Prices were 4 higher to 23 lower in the morning and extended losses to 35 lower in the afternoon.
In the absence of fresh factors, some focus is turning towards export numbers. There are reports of slow demand with quiet cash market. However, fundamentals are generally more positive with lower production expected through February. Supplies of other vegetable oils i.e. sun oil, canola oil etc are also forecast to be lower in coming months. Meanwhile, some attention will be drawn towards the conference in Indonesia this week.
Technical view - prices testing 2200 support which if broken will be negative. Trend sideways ; RSI 47.56 ; support 2193 / 2165 / 2100 ; resistance 2286 / 2345 / 2400.
Update at 11.31 am : ITS Malaysia palm oil export for November 1-25 fell 2.9%.
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