Trading Tips for the Day - 18 December 2014

FKLI will likely open higher today, for the first trade, 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 trading day.

As for FCPO, market closed slightly higher yesterday after choppy trading on either sides of the previous day's close. Market eroded in the morning following lower CBT soyoil, China Dalian futures and crude mineral oil. Quiet cash market also undermined sentiment. Better buying came in the afternoon, led by bottom picking. Short covering added support. Prices were 3 to 18 lower in the morning and rose to 15 higher in the afternoon.

The better close yesterday showed that sentiment is not so bearish. Market was weighed down by negative effect from very weak crude mineral oil, which may see reduced use for biodiesel.

However, palm oil fundamentals are supportive. Lower production and stocks are expected through February. Think the crude mineral oil downside is limited and palm oil is likely to trend positively in the coming weeks.

Technical view - prices are still in the 2100 - 2200 trading range, with a slightly negative bias. Trend sideways ; RSI 42.44 ; parabolic SAR at 2103 ; support 2100 / 2083 / 2064 / 2000 ; resistance 2155 / 2216 / 2250 / 2286.