Trading Tips for the Day – 20 August 2014

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.

As for FCPO, strong selling in the afternoon yesterday closed market at fresh new low since 9 October 2009. Selling was prompted by lack of supporting factors and concerns over increasing production and stocks in the coming months. Prospect of very good weather in the US continuing for the current soyabean crop also undermined sentiment. Late rumours of better pick up in exports the last 5 days had little effect. Prices were 10 higher to 4 lower in the morning and eroded to 22 lower in the afternoon.

Absence of positive development continued to keep bears comfortable and in control. Nearby factors point to weak trend continuing. Production and stocks will likely increase in the coming months. Bumper US soyabean crop seems assured with good weather and improved crop ratings by USDA in its weekly crop progress report. However, current prices are attractive to induce greater demand, including for fuel and biodiesel.

Technical view – weak trend continued. The increasing open positions pointed to the shorts maintaining. Prices may drop to 2000. The RSI and stochastic remain oversold and some upward correction is due. Trend down ; RSI 17.25 ( oversold ) ; parabolic SAR at 2144 ; stochastic oversold ; support 2050 / 2000 / 1950 ; resistance 2100 / 2163 / 2200 / 2250 ; open interest increasing.

Trading Tips for the Day – 19 August 2014

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 trading day.

For FCPO, market closed slightly lower yesterday after trading on either sides of the previous day’s close. There was light support early following the technically oversold situation and ideas that prices were relatively low. Weakness in CBT soyoil and China Dalian futures capped gains while encouraging selling on rallies. Prices were 7 higher to 8 lower in the morning and traded mostly around 5 lower in the afternoon.

There are no changes in the bearish fundamentals. Palm oil production will be higher in the coming months through October and the stocks will increase. Prospect of El Nino weather has diminished. US soyabean crop will be a record high with current very good weather. Generally, global oilseeds supplies are exceeding demand. However, prices are now relatively low and attractive for increasing use in fuels and biodiesel, which may limit the downside.

Technical view – indicators continue negative. Prices may erode to 2000. There may be some upward correction from the oversold situation in both RSI and stochastic. Trend down ; RSI 18.59 ( oversold ) ; parabolic SAR at 2163 ; stochastic oversold ; support 2085 / 2050 / 2000 ; resistance 2163 / 2200 / 2250 ; open interest increasing.

Trading Tips for the Day – 18 August 2014

FKLI will likely a little down, for the first trade today, one csn attempt ro 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.

Trading Tips for the Day – 15 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 and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, harply lower CBT soyoil pressured the market to its lowest level since 15 October 2009. China Dalian also reacted in tandem, with RBD olein futures losing more than 2 pct. Adding weight was a stronger ringgit which rose more than 0.4 pct vs USD yesterday. Technical selling and long liquidation magnified losses. Prices gapped 26 to 43 lower in the morning and extended losses to 61 lower before closing off the lows.

Bears continued to flex their muscles following weakness in related outside factors. The very good weather is pressuring CBT soyoil, with bumper soyabean crop expected and China Dalian futures following. Weak crude mineral oil price, firmer ringgit and better global oilseeds supplies added to the negative outlook. Unless export demand picks up soon, weak trend may continue with high production months in August – October.

Technical view – bearish trend continues. Indicators remain negative. Market is oversold. Upward correction is a sell opportunity. An effective break below 2100 will carry prices to 2000.  Trend down ; RSI 21.92 ( oversold ) ; parabolic SAR at 2207 ; stochastic oversold ; support 2115 / 2100 / 2050 ; resistance 2163 / 2200 / 2250 / 2300 ; open interest increasing.

Trading Tips for the Day – 14 August 2014

FKLI will 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 and put a stop 5 points away from your entry point.  Close your position by the end of the day.

For FCPO, market failed to hold early gains and closed lower yesterday. Selling was led by bearish sentiment in the absence of fresh factors. Weakness in CBT soyoil and soyabean, amid bearish fundamentals, continued to add weight. There was light support early from the technically oversold situation and reports of increased July imports by India. Prices were 14 higher to 7 lower in the morning and eroded to 24 lower in the afternoon.

The continuing good weather in USA and the USDA estimate of record high soyabean crop as well as an increase in world ending stocks are negative. Together with increasing palm oil production in the coming months, they are all likely to keep sentiment bearish in the coming week. However, there are prospects that consumers may start to replenish stocks as prices are relatively low. Increasing use for biodiesel may also lend support.

Technical view – no change in negative indicators. Prices may move to the 2013 low of 2137. Any correction from the oversold situation is a sell opportunity.  Trend down ; RSI 26.01 ( oversold ) ; parabolic SAR at 2230 ; stochastic oversold ; support 2162 / 2135 / 2100 / 2050 ; resistance 2200 / 2250 / 2300 / 2345 ; open interest increasing.

Trading Tips for the Day – 13 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 points away from your entry point.  Close your position by the end of the day.

Market closed higher yesterday after trading on either sides of the previous day’s close. Prices dropped to fresh new lows since 30 July 2013 early. Buying was led by bottom picking on ideas that the downside may be limited. Technical support from the oversold situation and short covering added gains. Market was lower early in the morning and afternoon following weakness in CBT soyoil and China Dalian futures. Prices were 15 lower to 19 higher in the morning and 4 lower to 13 higher in the afternoon.

There was no fresh factor. CBT soyoil and China Dalian probably followed our sharp erosion yesterday. Support today looked mainly technical and also profit taking after big drop the past 2 days. The fundamental outlook remains negative with slow demand and increasing production. Better global oilseeds supplies, amid near ideal weather for the current US soyabean crop, added to the gloom.

Technical view – prices correcting from the oversold situation indicated in both RSI and stochastic. No change in negative indicators. Trend down ; RSI 27.22 ( oversold ) ; parabolic SAR at 2247 ; stochastic oversold ; support 2135 / 2100 / 2050 ; resistance 2250 / 2300 / 2345 / 2400 ; open interest increasing.

Trading Tips for the Day – 12 August 2014

FKLI will likely open a little 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 trading day.

For FCPO, bears came out in numbers yesterday, pressuring market to new lows since 30 July 2013. The 1-10 August exports were the lowest in 4 months, the MPOB July data showed higher production and stocks against earlier expectations, Southern POMA reported high 1-10 August production, CBT soyoil and China Dalian eased, and the ringgit gained about 0.3 pct vs USD. Technical selling and long liquidation added losses. Prices were 7 higher to 22 lower in the morning and eroded to 59 lower in the afternoon.

The big concern was the low export numbers by the cargo surveyors which raised ideas of slow demand. With production expected to continue increasing through October, stocks may build up significantly. Absence of weather problems in the US and India are also negative. However, there are ideas that the market may be near the bottom as prices are relatively low. The prospect of increasing use for biodiesel may help to limit the downside.

Technical view – the easy break down from the 2200 support kept indicators negative. Prices may test the 2013 low of 2137.  Trend down ; RSI 24.25 ( oversold ) ; parabolic SAR at 2268 ; stochastic oversold ; support 2135 / 2100 / 2050 ; resistance 2250 / 2300 / 2345 / 2400.

Trading Tips for the Day – 11 August 2014

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%

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.

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.

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