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 day.
As for FCPO, market closed higher Friday after eroding to its lowest level, since 1st Dec, in the early afternoon. Late support was tied to short covering and weekend profit taking. Market was supported in the morning on ideas that it was due to some pull back from sharp drop the past 3 days. Bearish MPOB March data resulted in a sell down in the early afternoon. Prices were 1 lower to 19 higher in the morning and dipped to 28 lower in the afternoon before recovering. Weaker ringgit gave some support.
The MPOB data was a big surprise on production. The high numbers point to stocks increasing in the coming months, as production usually improves, unless demand picks up. The 1-10 April exports were slightly below average and guesstimates. Competition from bumper South American soyabean crop will also weigh on the market. However, the likelihood of Indonesia imposing export levy on CPO to boost use for biodiesel is positive.
Technical view - indicators continue negative with prices testing the 2100 support. An effective break will carry prices to 2050. Trend down ; RSI 40.65 ; stochastic oversold ; support 2100 / 2080 / 2050 / 2000 ; resistance 2165 / 2205 / 2250 / 2280.
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