FKLI will likely open lower today, 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 closed lower for the 4th consecutive day, to its lowest level since 30 April. Selling followed sharply lower CBT soyoil, China Dalian futures, and crude mineral oil. Losses were held by the very good 1-20 May exports and weak ringgit, which lost about 0.5 pct vs USD. The oversold technical situation in the stochastic also helped to limit the decline. Prices were 27 to 8 lower in the morning and 6 to 21 lower in the afternoon.
A continuation of strong exports may keep end May stocks about unchanged vs April. With prospects of good demand continuing through upcoming Ramadan, and increased usage by Indonesia for fuel, there should be little supply pressure. However, big supplies of soyabean and weakness in crude mineral oil are undermining sentiment. In anycase, weather will be closely followed in the coming months, with US soyabean crop currently being planted and India looking towards the monsoon.
Technical view - the break below 2150 is slightly negative. The oversold situation in the stochastic may see some upward correction. Ringgit ~ 3.6120 / 3.6150 vs USD. Trend down ; RSI 44.75 ; parabolic triggered a "sell" signal at 2145 ; stochastic oversold ; 5-day MA intersected 20-day MA from above ; support 2110 / 2070 / 2000 ; resistance 2200 / 2235 / 2270 / 2320.
In other news...
🇺🇸 U.S. stocks fell slightly, giving up earlier gains, Treasury bonds strengthened and the dollar pared gains against the euro after minutes from the Federal Reserve’s April policy meeting suggested the central bank remains hesitant to raise interest rates soon.
🇨🇳 Investors will be focusing on May HSBC China Flash Manufacturing PMI, which was 48.9 at the end of April. Last month’s PMI reading marked the biggest contraction in Chinese manufacturing in a year and was a factor in the People’s Bank of China’s decision to instigate another rate cut.
🇬🇧 The Bank of England policy minutes showed that the Monetary Policy Committee voted unanimously (9-0) to keep its base rate unchanged at 0.50%. However, the minutes also said that slack in the UK economy will probably be eroded within a year, which signals that potential future inflation pressures may then require a rate hike.
€ European shares closed mixed, but markets struggled to gain momentum amid worries about cash-strapped Greece and as focused turned to the release of the minutes from the U.S. Federal Reserve's last meeting.
€ The ECB increased the amount of money Greek banks can borrow under an emergency lending program, according to a Greek bank official, extending a lifeline for the country’s banks.
🇯🇵 Nikkei 225 ended up nearly 1% on the back of the upbeat GDP print. Japan's Q1 GDP rose +2.4% (q/q annualized), which was stronger than consensus of +1.6%, although Q4 was revised lower to +1.1% from +1.5%.
⛽ Oil prices moved higher after after weekly government data showed unexpectedly large drops in U.S. supplies of crude oil and petroleum products.
👑 Gold prices surged in electronic trading in the seconds following the publication of the minutes of the Fed’s meeting before falling back, but remained positive for the day.
🌴 FCPO (RM2,142) closed to its lowest level since 30 April. Selling followed by sharply lower CBT Soyoil, China Dalian futures and crude mineral oil. However, losses were held by very good export data and weak Ringgit. The price break below 2,150 was slightly negative. The oversold situation at stochastic may see some upward correction.
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