Trading Tips for the Day - 26 May 2015

FKLI will likely open lower 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 or FCPO, market closed higher yesterday on better support in the afternoon. Buying was encouraged by the very high 1-25 May exports and prospects of good export pace continuing. Weak ringgit, which lost about 0.8 pct vs USD, was also supportive. Market eroded in early trading following sharply lower CBT soyoil and crude mineral oil. Easier China Dalian futures also undermined sentiment. Prices were 14 to 1 lower in the morning and rose to 16 higher in the afternoon before giving back some gains towards close.

The 1-25 May exports were the highest for 25 days since the record high in October 2011. A continuation of the strong export pace may see lower stocks with production estimated to rise 5-10 pct. Together with prospects of good demand for the festive Ramadan, the short term fundamentals look positive. However, the bumper soyabean crop and lack of weather concerns so far, are keeping sentiment generally more negative.

Technical view - indicators remain negative. Prices may return to fill the gap at 2108. Ringgit ~ 3.6140 / 3.6160 vs USD.  Trend down ; RSI 44.64 ; stochastic turned up from oversold ; support 2110 / 2070 / 2000 ; resistance 2200 / 2235 / 2270 / 2320. 

In other news...

🇨🇳 Shanghai index rallied above the 5,000 level, scoring fresh multi-year highs, as investors reacted to a rejuvenated dollar and news of more than 1000 infrastructure projects in China.

🇨🇳 China outlined plans to support manufacturing in 10 major areas including information technology, robotics, aviation and aerospace equipment, rail transport, new energy vehicle, power equipment, medical equipment and agricultural machinery in the next 10 years, the Xinhua News Agency reported last week, citing a plan issued by the State Council.

📝 The Athens Composite index closed more than 3% lower, as fears of a potential Greek exit from the euro zone remained in the backdrop after the country's interior minister, Nikos Voutsis, threatened to default on loan repayments due to the International Monetary Fund on Sunday.

🇸🇬 Singapore's gross domestic product (GDP) in the first quarter grew 2.6 percent from the year-earlier period, beating expectations for 2.2 percent growth from a Reuters poll.

🇺🇸 Today, U.S. Economic data is expected to be mixed.
- U.S. May consumer confidence expected to edge lower
- U.S. home prices expected to show another strong increase 
- April new home sales expected to recover some of March’s tumble 
- Manufacturing data expected to be mixed

👑 Gold prices fell slightly on Monday, as the dollar gained traction against major currency rivals, on signs the Federal Reserve is preparing to tighten monetary policy for the first time in six years in 2015. Now, $1,206.

🌴 FCPO (RM2,138) closed slightly higher as buying was encouraged by good 1-25 May exports and expectation that good export pace continuing. However, bumper soybean crop and lack of weather concerns, generally keep sentiment negative.