FKLI will likely open slightly lower, 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 its lowest level since 5 January, closing weak. Strong selling came in the
afternoon, tied to ideas of slow demand. Ideas that the flood situation is improving and absence of covering in the cash market undermined sentiment. Lower CBT soyoil and continuing weakness in crude mineral oil added weight. Market was higher early on supply concerns. Prices were 18 higher to 15 lower in the morning and eroded to 50 lower in the afternoon.
With no reports of tightness in the cash market, there was stronger focus on the poor January exports to date. Weakness in other vegetable oils, ie. soyoil, rapeseed oil, etc. in light of the expected bumper South American soyabean production and weak crude mineral oil added to the negative outlook. However, lower production through February will keep the market sensitive to demand and limit the downside.
Technical view - the weak close keeps indicators negative. Good support seen around 2250. Trend down ; RSI 48.73 ; stochastic oversold ; 5-day MA intersected 20-day MA from above ; support 2237 / 2200 / 2150 ; resistance 2355 / 2395 / 2435 / 2510.
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