FKLI will likely open very near to yesterday's close. 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 rose for the 8th consecutive day to highest level since 4 November. Buying followed reports of severe floodings continuing which may extend to the major producing state of Johore. Strong gains in CBT soyoil and China Dalian futures, led by the strength in palm oil, also underpinned sentiment. Prices gapped 58 to 33 higher in the morning and held steady in the afternoon.
It was all on monsoon rains and floodings. Production will definitely be lower than earlier estimates in December. Both Southern POMA and MPOA have reported big drops which may turn out bigger for the whole month as floods have not abated. Quality problems may also cause sellers to hold back. If demand maintains at previous months' pace, market strength is likely to continue. Higher India import duty is negative but is now secondary.
Technical view - prices rose above 2250 and 2286 resistance, continuing the up trend towards 2350. Overbought situation in the stochastic may see some pull back which would be buy opportunity. Trend up ; RSI 65.13 ; stochastic overbought ; support 2250 / 2188 / 2150 / 2100 / 2083 ; resistance 2308 / 2345 / 2400.
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