Trading Tips for the Day - 20 April 2015

FKLI will open lower today with Dow Jones closing more than 250 points.  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, erratic market on Friday, trading on either sides of the previous day's close. Market was traded lower early before recovering late in the afternoon. Early selling followed the stronger ringgit, which gained about 0.8 pct vs USD today, and the slightly easier CBT soyoil and China Dalian futures.

Prospects of better demand on expectations of smaller exports from Indonesia encouraged support on dips. Prices were 6 higher to 18 lower in the morning and rose to 13 higher in the afternoon in choppy trading.

There were no new factors. Ideas that market will hold above 2100 encouraged some bottom picking. Lingering support remains on the Indonesian export levy on CPO which is awaiting presidential approval as it may draw more demand to Malaysia. However, higher production in the coming months and bumper South American soyabean crop are keeping sentiment generally more negative.

Technical view - prices turned sideways. Key support level is 2100 and resistance at 2200.  Trend down ; RSI 44.31 ; support 2100 / 2080 / 2050 / 2000 ; resistance 2180 / 2205 / 2250 / 2280.

As for other news...

🇨🇳 On Sunday, The reserve-requirement ratio will be lowered 1% point effective April 20, the People’s Bank of China said on its website Sunday, the second reduction this year and the largest since November 2008. The level will decline to 18.5%, still high by global standards, based on previous statements. The cut will allow banks to boost lending, unleashing about 1.2 trillion yuan ($194 billion), and may spur another leg higher in the nation’s booming stock market.

🇨🇳 On Friday, China stock futures fell more than 5% in after-hours trading after China's Securities Regulatory Commission said it will ban margin financing for over-the-counter stock trading and expand short-selling.

Chinese government had asked investors to "take froth out of the market". China also allowed fund managers to lend shares for short-selling on Friday and will expand the number of stocks investors can short sell, in an effort to raise the supply of securities in the market, according to Reuters.

🇺🇸 U.S. stocks traded sharply lower on Friday, following a global decline in equities on renewed Greece concerns and new Chinese trading regulations, amid U.S. inflation and consumer data.
* Dow - 279
* S&P -23
* Nasdaq -75

🇺🇸 The U.S. Mar CPI report of +0.2% m/m and -0.1% y/y was weaker than expectations of +0.3% m/m and unch y/y. The -0.1% y/y decline matching Jan’s 5-1/3 year low. Mar core CPI rose +0.2% m/m, right on expectations, and rose +1.8% y/y, higher than expectations of +1.7%

€ European stocks were down at a 3-week low, The main bearish factor China government new regulations and tensions over Greece debt negotiations. Another negative for stocks was weakness in technology stocks with AMD down over 12% in pre-market trading after it reported a larger-than-expected loss in Q1.

🇯🇵 Japan's Nikkei index fell -1.17% (19,652) to a 1-1/2 week low as exporters declined after the yen rallied to a 3-week high against the dollar.

🇨🇳 Shanghai bourse closed up 2.2% (4,288) to rewrite its highest level since March 2008 as bets of further stimulus continued to buoy risk appetite.

 Gold closed higher on Friday after data showing U.S. consumer prices rose in March tempered speculation the Federal Reserve will delay its first interest rate rise in nearly a decade.

 FCPO traded lower early before recovering late in the afternoon. Early selling followed the strong selling, and the slightly lower CBT Soyoil and China Dalian. There were no new factors. Investors waiting for the Indonesia President on export duty decision. Price turn sideway, key support at 2,100 and resistance at 2,200.