FKLI will likely open higher, for the first trade today, 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.
For FCPO, on Friday market closed at 1-year low today as bearish sentiment dominated. Selling was prompted by a quiet cash market and ideas of slow demand. Expectations of higher production and stocks through October undermined support. Market was higher early on uncertainties following sharp losses in equity markets as the US President Barack Obama, authorized limited airstrikes in Iraq. Prices were 14 higher to 3 lower in the morning and eroded to 23 lower in the afternoon.
MPOB data for July on Monday may be slightly supportive as production and stocks are likely to be lower than earlier expectations. However, the likelihood of slower 1-10 August exports vs a month ago may have more effect on sentiment. Most factors look negative at present. US weather remains near ideal, Indian monsoon is better and chances of El Nino are diminishing. Higher production in the coming months is likely to keep market under pressure.
Technical view - prices continuing their down trend towards 2200. Indicators remain negative. Trend down ; RSI 30.78 ; parabolic SAR at 2268 ; stochastic slightly oversold ; support 2200 / 2135 / 2100 ; resistance 2300 / 2345 / 2400.
Latest update : ITS- Malaysia's August 1-10 palm oil exports drop 22.2%
Monday, August 11, 2014
Friday, August 8, 2014
Trading Tips for the Day - 8 August 2014
FKLI will likely open lower, for the first trade today, 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.
Market closed mixed yesterday with forwards higher. Nearbys eased on long liquidation. Buying was encouraged by higher CBT soyoil and China Dalian futures. Steady cash market and weaker ringgit, which lost about 0.3 pct vs USD were also supportive. Gains were however capped by lack of bullish factors. Prices were 12 to 0 higher in the morning and extended gains to 16 higher in the afternoon before closing around mid range.
There were no new factors. Ideas that downside may be limited with current relatively low prices probably induced support. Stocks are relatively low and cash sellers seem reserved at present levels. However, fundamentals have negative outlook with seasonal high production in Aug - Oct and bumper US soybean crop expected.
Technical view - indicators remain negative with prices continuing within the downtrend channel.
Trend down ; RSI 33.97 ; parabolic SAR at 2272 ; support 2240 / 2200 / 2135 / 2100 ; resistance 2300 / 2345 / 2400.
Market closed mixed yesterday with forwards higher. Nearbys eased on long liquidation. Buying was encouraged by higher CBT soyoil and China Dalian futures. Steady cash market and weaker ringgit, which lost about 0.3 pct vs USD were also supportive. Gains were however capped by lack of bullish factors. Prices were 12 to 0 higher in the morning and extended gains to 16 higher in the afternoon before closing around mid range.
There were no new factors. Ideas that downside may be limited with current relatively low prices probably induced support. Stocks are relatively low and cash sellers seem reserved at present levels. However, fundamentals have negative outlook with seasonal high production in Aug - Oct and bumper US soybean crop expected.
Technical view - indicators remain negative with prices continuing within the downtrend channel.
Trend down ; RSI 33.97 ; parabolic SAR at 2272 ; support 2240 / 2200 / 2135 / 2100 ; resistance 2300 / 2345 / 2400.
Thursday, August 7, 2014
Trading Tips for the Day - 7 August 2014
FKLI will most likely open flat, for the first trade today, one can attempt to Long 1-3 point 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.
For FCPO, market extended losses to a 1-year low today after failing to hold early gains. Selling was prompted by expectations of higher production and stocks in the coming months and absence of bullish factors. Weakness in CBT soyoil added pressure. Some early support from the prospect of lower end July stocks, to be reported by MPOB on 11 August, as indicated by the Reuters poll did not follow through. Prices were 8 higher to 13 lower in the morning and 15 lower to unchanged in the afternoon.
Difficult to shake the bearish sentiment at present unless weather turns adverse. With seasonally high production coming up in August - October, there is little incentive for buying. The weakness in CBT soyoil, in light of the very good weather, also undermined sentiment. However, there may be some support in the short term on the likelihood of MPOB reporting lower than expected production and stocks in July.
Technical view - the break out of consolidation to new lows is negative. Prices may move to 2200. Trend down ; RSI 31.78 ; parabolic SAR at 2280 ; support 2200 / 2135 / 2100 ; resistance 2300 / 2345 / 2400.
For FCPO, market extended losses to a 1-year low today after failing to hold early gains. Selling was prompted by expectations of higher production and stocks in the coming months and absence of bullish factors. Weakness in CBT soyoil added pressure. Some early support from the prospect of lower end July stocks, to be reported by MPOB on 11 August, as indicated by the Reuters poll did not follow through. Prices were 8 higher to 13 lower in the morning and 15 lower to unchanged in the afternoon.
Difficult to shake the bearish sentiment at present unless weather turns adverse. With seasonally high production coming up in August - October, there is little incentive for buying. The weakness in CBT soyoil, in light of the very good weather, also undermined sentiment. However, there may be some support in the short term on the likelihood of MPOB reporting lower than expected production and stocks in July.
Technical view - the break out of consolidation to new lows is negative. Prices may move to 2200. Trend down ; RSI 31.78 ; parabolic SAR at 2280 ; support 2200 / 2135 / 2100 ; resistance 2300 / 2345 / 2400.
Wednesday, August 6, 2014
Trading Tips for the Day - 6 August 2014
FKLI will likely open a few points lower, for the first trade today, 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 trading day.
For FCPO, market closed lower yesterday after trading on either sides of the previous day's close. Selling was tied to bearish sentiment on ideas that current fundamentals are mostly negative. Firmer ringgit, which gained more than 0.4 pct vs USD, also undermined sentiment. There was support early following strong gains in CBT soyoil. Prices were 13 higher to 10 lower in the morning and 19 to 1 lower in the afternoon.
Fundamentals are generally negative. With no major problems reported on the global weather, oilseeds supplies are expected to be abundant this season. USDA kept its soyabean crop ratings of good / excellent at 71 pct vs a week ago, and a record harvest of 3.8 billion bushels. Palm oil production is expected to maintain its seasonal peak in August - October in the absence of El Nino weather. Unless export demand picks up, weak trend may continue.
Technical view - prices continue to hold within the 2250 - 2300 sideway range. Breakouts from these levels may see the next major move. Trend sideways ; RSI 32.79 ; parabolic SAR at 2280 ; support 2245 / 2200 / 2135 ; resistance 2300 / 2345 / 2400 ; open interest increasing.
For FCPO, market closed lower yesterday after trading on either sides of the previous day's close. Selling was tied to bearish sentiment on ideas that current fundamentals are mostly negative. Firmer ringgit, which gained more than 0.4 pct vs USD, also undermined sentiment. There was support early following strong gains in CBT soyoil. Prices were 13 higher to 10 lower in the morning and 19 to 1 lower in the afternoon.
Fundamentals are generally negative. With no major problems reported on the global weather, oilseeds supplies are expected to be abundant this season. USDA kept its soyabean crop ratings of good / excellent at 71 pct vs a week ago, and a record harvest of 3.8 billion bushels. Palm oil production is expected to maintain its seasonal peak in August - October in the absence of El Nino weather. Unless export demand picks up, weak trend may continue.
Technical view - prices continue to hold within the 2250 - 2300 sideway range. Breakouts from these levels may see the next major move. Trend sideways ; RSI 32.79 ; parabolic SAR at 2280 ; support 2245 / 2200 / 2135 ; resistance 2300 / 2345 / 2400 ; open interest increasing.
Tuesday, August 5, 2014
Trading Tips for the Day - 5 August 2014
FKLI will likely open a few points higher, for the first trade today, one can attempt to Long 1-3 points below the opening price. Try get 5-7 points profit, put a stop 5 points away from your entry point and close your position by the end of the day.
For FCPO, weakness in CBT soyoil pressured market lower yesterday. Adding weight was a firmer ringgit which gained about 0.3 pct vs USD. Quiet cash market and ideas of slow demand, with SGS also reporting lower 1-31 July exports vs June, also undermined sentiment. Prices were 18 to 29 lower in the morning and 31 to 14 lower in the afternoon.
Most factors are negative at present. Unless demand improves, stocks will build up with the seasonal peak production in August - October. Chances of El Nino weather are also diminishing and in anycase, is only expected to be moderate if it occurs. CBT soyoil outlook is also negative with record high soyabean crop expected in light of near ideal weather. However, current stocks are not burdensome and prices are deemed to be relatively low. These may limit the downside.
Technical view - prices continue to trade sideways in a 2250 - 2300 range. Breakouts from these levels may see the next major move. Trend sideways ; RSI 34.68 ; parabolic SAR at 2287 ; support 2245 / 2200 / 2135 ; resistance 2300 / 2345 / 2400.
For FCPO, weakness in CBT soyoil pressured market lower yesterday. Adding weight was a firmer ringgit which gained about 0.3 pct vs USD. Quiet cash market and ideas of slow demand, with SGS also reporting lower 1-31 July exports vs June, also undermined sentiment. Prices were 18 to 29 lower in the morning and 31 to 14 lower in the afternoon.
Most factors are negative at present. Unless demand improves, stocks will build up with the seasonal peak production in August - October. Chances of El Nino weather are also diminishing and in anycase, is only expected to be moderate if it occurs. CBT soyoil outlook is also negative with record high soyabean crop expected in light of near ideal weather. However, current stocks are not burdensome and prices are deemed to be relatively low. These may limit the downside.
Technical view - prices continue to trade sideways in a 2250 - 2300 range. Breakouts from these levels may see the next major move. Trend sideways ; RSI 34.68 ; parabolic SAR at 2287 ; support 2245 / 2200 / 2135 ; resistance 2300 / 2345 / 2400.
Monday, August 4, 2014
Trading Tips for the Day - 4 August 2014
FKLI will likely open a little lower, for the first trade today, one can attempt to Short 1-3 points above the opening price. Try get 5-7 points profit and put a stop 5 point away from your entry point. Close your position by the end of the day.
For FCPO, market rose on Friday on good support throughout the session. Buying was encouraged by continued weakness in the ringgit, which lost about 0.4 pct vs USD. Some bargain buying on ideas that prices were relatively low added support. Weekend short covering and technical correction from the oversold situation in the RSI magnified gains. Prices rose 4 to 25 higher in the morning and firmed to 30 higher in the afternoon.
Fundamentals are little changed. July production may turn out to be lower than the expected 10 pct increase which may result in further drop in stocks. This will keep stocks manageable as production enters the August - October peak period. Meanwhile, weather forecast in the US and India are reportedly good and is negative. However, prices of palm oil and soyoil are relatively low currently and will be sensitive to any positive development.
Technical view - the strong showing today puts prices in a 2250 - 2300 trading range. Breakouts from these levels may see the next major move. Trend down ; RSI 37.30 ; parabolic SAR at 2287 ; support 2250 / 2200 / 2135 ; resistance 2300 / 2345 / 2400.
For FCPO, market rose on Friday on good support throughout the session. Buying was encouraged by continued weakness in the ringgit, which lost about 0.4 pct vs USD. Some bargain buying on ideas that prices were relatively low added support. Weekend short covering and technical correction from the oversold situation in the RSI magnified gains. Prices rose 4 to 25 higher in the morning and firmed to 30 higher in the afternoon.
Fundamentals are little changed. July production may turn out to be lower than the expected 10 pct increase which may result in further drop in stocks. This will keep stocks manageable as production enters the August - October peak period. Meanwhile, weather forecast in the US and India are reportedly good and is negative. However, prices of palm oil and soyoil are relatively low currently and will be sensitive to any positive development.
Technical view - the strong showing today puts prices in a 2250 - 2300 trading range. Breakouts from these levels may see the next major move. Trend down ; RSI 37.30 ; parabolic SAR at 2287 ; support 2250 / 2200 / 2135 ; resistance 2300 / 2345 / 2400.
Friday, August 1, 2014
Trading Tips for the Day - 1 August 2014
FKLI will likely open lower as Dow Jones plunged more than 300 points. For the first trade today, one can attempt to Long 2-4 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, better sellers in the afternoon closed market lower today. Selling was tied to bearish sentiment continuing in the absence of bullish factors. Lower than expected July exports undermined support together with weakness in CBT soyoil. There was support in the morning following higher China Dalian futures and weaker ringgit, which lost about 0.4 pct vs USD. Prices were 14 to 2 higher in the morning and eroded to 19 lower in the afternoon before closing off the lows. Prompt August was higher on short covering.
The lower 1-31 July exports by ITS is likely to keep sentiment negative. With production forecast about 10 pct higher, stocks may not change much from a month ago. As production is entering the seasonally peak period in August - October and weather remains good in the US and India, negative sentiment may continue. However, prices and consumer stocks are relatively low which can bring strong reaction to any positive news.
Technical view - the erosion to new lows kept indicators negative. An effective break below 2250 will carry prices to 2200.
Technicals - trend down ; RSI 29.45 ( oversold ) ; parabolic SAR at 2289 ; support 2220 /
2200 / 2135 ; resistance 2300 / 2345 / 2400.
As for FCPO, better sellers in the afternoon closed market lower today. Selling was tied to bearish sentiment continuing in the absence of bullish factors. Lower than expected July exports undermined support together with weakness in CBT soyoil. There was support in the morning following higher China Dalian futures and weaker ringgit, which lost about 0.4 pct vs USD. Prices were 14 to 2 higher in the morning and eroded to 19 lower in the afternoon before closing off the lows. Prompt August was higher on short covering.
The lower 1-31 July exports by ITS is likely to keep sentiment negative. With production forecast about 10 pct higher, stocks may not change much from a month ago. As production is entering the seasonally peak period in August - October and weather remains good in the US and India, negative sentiment may continue. However, prices and consumer stocks are relatively low which can bring strong reaction to any positive news.
Technical view - the erosion to new lows kept indicators negative. An effective break below 2250 will carry prices to 2200.
Technicals - trend down ; RSI 29.45 ( oversold ) ; parabolic SAR at 2289 ; support 2220 /
2200 / 2135 ; resistance 2300 / 2345 / 2400.
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