Trading Tips for the Day - 29 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 for FCPO, continued strength in China Dalian olein futures carried market to a 2-week high yesterday. Buying was also encouraged by weakness in ringgit and higher e-CBT soyoil. Some reports of severe dry weather in East Malaysia also underpinned sentiment. Technical buy stops above 2200 magnified gains. Prices rose 12 to 41 higher in the morning and held steady throughout the afternoon.

There was some play on weather today. Reports of hot and dry weather in East Malaysia gave rise to El Nino concerns. However, palm oil production will only be affected after 6 months although sentiment can be immediate. China demand looks like the main factor with sharp rise in Dalian RBD palm olein futures pointing to strong demand continuing. However, the CBT soyoil / soyabean outlook is negative with good weather todate. Crude mineral oil is also weak.

Technical view - the break above 2200 is positive. Prices may move to 2250. Ringgit ~ 3.6410 / 3.6430 vs USD.  Trend sideways ; RSI 57.25 ; parabolic triggered a "buy" signal at 2208 ; stochastic overbought ; 5-day MA reintersected 20-day MA from below ; support 2150 / 2120 / 2070 / 2000 ; resistance 2235 / 2270 / 2320.  Interested to trade futures? PM me or visit http://jaceonmarkets.blogspot.com

In other news...

🇨🇳 Shanghai Composite widened losses in the afternoon session to end down 6.5% as more Chinese brokerages are tightening margin lending rules seem to be the main cause of concern among retail investors. In additional, an unit of the country’s sovereign wealth fund also cut its stakes in China’s biggest state-owned banks.

🇨🇳 China to Ease Limits on Overseas Investments - China’s campaign to turn the tightly controlled yuan into a global currency is crossing a new threshold, as the government plans to make it easier for individuals and companies to invest overseas.

🇺🇸 U.S. Stocks pullback slightly after a rocky week for stocks as investors grapple with news out of Greece, a mixed bag of economic data, a wave of new merger announcements and the prospect of the first interest-rate increase by the Federal Reserve in nine years later this year.
- U.S. Jobless Claims Rise, But Job Growth Still Seen Strong
- U.S. Pending Home Sales Hit Nine-Year High

💵 The dollar pushed to a 12-year high against the yen, buoyed by investors betting that the U.S. has emerged from its economic slowdown and is moving toward higher interest rates. Now, $/¥ 123.77.

€ European stocks were down after European officials rebuffed Greece's claim that a deal on Greek bailout funds is near. Also, the ECB warned in its twice-yearly Financial Stability Review that a failure to reach an agreement on Greece's aid program may drive bond yields in other Eurozone countries higher.

€ Eurozone May economic confidence was unchanged at 103.8, stronger than expectations of -0.2 to 103.5.

🇯🇵 Japan's Nikkei Stock Index climbing +0.39% to a fresh 15-year high as exporters rallied on weakness in the yen which tumbled to a 12-1/3 year low against the dollar.

⛽ Oil prices managed a gain after weekly inventory data showed bigger-than-expected drops in crude and gasoline supplies. U.S. commercial crude-oil supplies fell by 2.8 million barrels in the week ended May 22, the U.S. EIA said.

👑 Gold prices edged higher, as weaker-than-expected U.S. jobs data reminded investors of the uneven recovery of the world’s largest economy. Now, $1,189.20.

🌴 FCPO (RM2,208) closed higher yesterday. Bullish factors: (1) strength in China Dalian futures and CBT Soyoil. (2) weak Ringgit. (3) report on hot and dry weather at East Malaysia give rise in El-Nino concerns. However, palm oil production will only affected although sentiment can be immediate. (4) Technical buy stop above RM2,200.