Trading Tips for the Day - 15 June 2015

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 eroded to a 2-week low today. Selling was prompted by sharp losses in CBT soyoil and China Dalian futures. Expectations of higher stocks from seasonally peak production months in August - October continued to undermine support. Late news that Indonesia will commence the export levy on palm oil from 15 June helped to check losses. Prices gapped 25 to 38 lower in the morning and remained weak most of the afternoon before recovering to 9 lower towards close.

There is more emphasis on seasonal weakness from increasing production in the coming months. Demand is not expected to be big enough to prevent higher stocks especially with the current bumper soyabean supplies. However, talks of El Nino weather, if it materializes, will turn sentiment bullish. The start of the Indonesian export levy to assist biodiesel production is positive as it may lead to more exports from Malaysia.

Technical view - the break below 2275 is slightly negative. Prices may test the 2250 support. Ringgit ~ 3.7560 / 3.7580 vs USD.  Trend down ; RSI 56.39 ; parabolic SAR at 2254 ; stochastic slightly oversold ; support 2250 / 2225 / 2150 ; resistance 2330 / 2360 / 2400 / 2450.

In other news...

🇺🇸 U.S. stocks closed lower on Friday, as continued uncertainty over Greece pressured stocks and investors kept an eye on a calmer bond market ahead of this week's Federal Reserve meeting. Losses in stocks were limited after the early-Jun U.S. consumer sentiment index from the University of Michigan rose +3.9 to 94.6, stronger than expectations of +0.5 to 91.2.

€ European stocks were down as Greek default concerns intensified after European Union President Tusk said "there is no more time for gambling."

📝 Greek bank stocks tumbled and Greece's ASE Stock Index is down -2.83% as Tusk rebuked Greek Prime Minister Tsipras for dragging his feet on a debt agreement. According to two officials present at the talks, policy makers are now examining all scenarios if Greece refuses to compromise, including the possibility that Greece is forced to leave the Eurozone.

🇨🇳 China's Shanghai Composite Index up +0.87% at a new 7-1/3 year high on speculation the PBOC may cut banks' reserve requirement ratios as early as this weekend.

⛽ Oil settled more than 1% lower on Friday after oilfield services firm Baker Hughesreported its U.S. rig count declined for a 27th straight week.

👑 Gold inched lower, shrugging off the slightly weaker dollar, lower equity markets and uncertainty over the Greek debt crisis, as traders were cautious ahead of the U.S. Federal Reserve's policy-setting meeting next week. Moreover, Gold closed lower on reduced demand for gold as an inflation hedge after the May final-demand core PPI fell to +0.6% y/y, the weakest pace since the data series began in 2010.

🌴 FCPO (RM2,276) closed at 2-week low as sharp losses at China Dalian Futures and CBT Soyoil. Price supported from low after news that Indonesia will commerce an export levy on palm oil effective from 15 June. However, market still emphasis on the seasonal weakness from the increasing production in the coming months. Price break below 2275 is slightly negative.