Trading Tips for the Day - 3 June 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 from your entry point.  Close your position by the end of the day.

As for FCPO, market closed higher but gave back most gains towards the close. Another sharp rise in CBT soyoil saw market soaring to a 3-month high. Gains in China Dalian futures and crude mineral oil were also supportive. Short covering and technical strength added gains. Sentiment was also underpinned by further weakening of the ringgit which lost about 0.3 pct vs USD. Prices gapped 27 to 53 higher in the morning and firmed to 55 higher in the afternoon before closing around the day's lows.

Most short term factors are supportive at present, ie. prospects of increased use for biodiesel in the US, forecast of below average monsoon and possible drought in India, firmer crude mineral oil, better demand for the upcoming Ramadan, weak ringgit, etc. However, global soyabean supplies are abundant and current weather in the US is relatively good. Palm oil production will also be higher in the coming months. Barring any adverse weather, the upside may be limited from current levels.

Technical view - there was a runaway gap today as prices rose towards the 2400 objective. The overbought situation in both RSI and stochastic may see some downward correction. Ringgit ~ 3.6970 / 3.6990 vs USD.  Trend up ; RSI 70.26 ( slightly overbought ) ; stochastic overbought ; support 2295 / 2250 / 2225 / 2150 ; resistance 2350 / 2400 / 2450.

In other news...

Greece faces a 300 million euro ($327.9 million) payment to the International Monetary Fund (IMF) on Friday, but there are doubts the country can honor the debt without further financial aid.

💵 The dollar index dropped to a 1-week low and closed sharply lower after Fed Governor Brainard’s suggestion that she may favor delaying an interest rate hike when she said “the string of soft data in Q1 raises some questions about the contours of the economic outlook,”

🇺🇸 U.S. Stock index rebounded from their worst levels on optimism a deal to unlock bailout funds for Greece can be reached after representatives of Greek creditors were said to be finalizing a new proposal.

🇺🇸 Tonight US highlights:
* ADP expected to show a tepid increase of +200,000.
* US trade deficit expected to fall back to more normal levels after March’s surge on settlement of dockworkers’ strike.
* ISM non-manufacturing confidence expected to fall but remain stronger than manufacturing confidence.
* EIA report expected to show fifth consecutive decline in crude oil inventories but glut continues.

€ European stocks closed mostly lower as investors focused on the continuing negotiations on Greece's debt problems and new economic data. Only positive news for European stocks is reduced deflation concerns after Eurozone May consumer prices climbed at a faster-than-expected pace.

€ The Eurozone May CPI estimate rose +0.3% y/y, stronger than expectations of +0.2% y/y and the largest increase in 6 months.

🇨🇳 China's Shanghai Composite Index, which closed up 1.72% after nursing modest losses earlier in the day. Technology and small-cap stocks led the advance on the main bourse.

⛽ Oil prices closed at their highest level since December, driven by a weak dollar, and expectations that U.S. crude supplies could have fallen again last week for a fifth straight week.
* WTI crude oil $61.26 (+1.06)
* Brent crude $65.50 (+0.70)

👑 Gold futures for August delivery settled up $5.70 to $1,194.40 an ounce in response to losses in the dollar and also as uncertainty on Greece's debt crisis might lead to a significant breakthrough. Now, $1,193.90.

🌴 FCPO (RM2,312) closed higher but gave back most gains toward the close. FCPO closed above 2,300 as sharp rise in Soyoil, China Dalian and Crude mineral oil. Technical buying and weak Ringgit also added support. There was a runaway gap as prices rose toward the 2,400 objective. However, overbought situation at both RSI and stochastic may see some downward correction.