Archive for the ‘fkli trading tips’ Tag

Trading Tips for the Day – 3 September 2014

FKLI will likely open a few points lower, for the first trade today one can attempt to Short at 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 closed higher yesterday after eroding to fresh new low early. Buying was encouraged by better export pace the last few days and higher China Dalian olein and soyoil futures. Weaker ringgit, which lost about 0.5 pct vs USD, added support. Technical correction from the oversold situation and positive divergence between price and RSI / stochastic were also supportive. Market eroded early following sharply lower CBT soyoil. Prices were 15 lower to 23 higher in the morning and extended gains to 34 higher in the afternoon.

There was some support from bottom pickers on ideas that the downside may be limited from current levels. China Dalian futures were also relatively steady the past few days. The improved export pace also raised the prospect that demand will be better in the coming months especially with reports of low consumers stock. However, fundamentals remain negative with higher production through October and bumper US soyabean crop.

Technical view – prices correcting from the oversold situation. The positive divergence between price and RSI / stochastic may see further gains in the coming days.  Trend down ; RSI 22.59 ( oversold ) ; support 1900 / 1850 / 1800 ; resistance 2000 / 2050 / 2100 / 2163 ; positive divergence between price and RSI ; positive divergence between price and stochastic.

Trading Tips for the Day – 2 September 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.

For FCPO, market came under another sell down on Friday to close sharply lower for the fourth consecutive week. Selling was prompted by continuing bearish sentiment in the absence of supporting factors. Quiet cash market and ideas of slow demand undermined support. Technical selling as prices broke below 1950 magnified losses. Steady China Dalian futures and CBT soyoil encouraged light support at the opening which found stiff resistance. Prices were 5 higher to 11 lower in the morning and extended losses to 53 lower in the afternoon.

Heavy selling inspite of a 3-day weekend pointed to strong bearish sentiment. There seemed to be selling ahead of the expected poor 1-31 August exports to be reported by the cargo surveyors on 2 September. Lack of supporting factors also kept bears comfortable. Unless demand picks up soon, market may remain under pressure in the coming weeks.

Technical view – prices broke below 1950, continuing the negative trend. Good support seen at 1900. No change in negative indicators.  Trend down ; RSI 16.34 ( oversold ) ; parabolic retriggered a “sell” signal at 1957 ; stochastic oversold ; support 1900 / 1850 / 1800 ; resistance 2000 / 2050 / 2100 / 2163.

Trading Tips for the Day – 29 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.

For FCPO, market closed slightly higher yesterday in an erratic and choppy session. September was, however, lower on long liquidation. Buying was encouraged by steadiness in China Dalian futures and e-CBT soyoil. Prospect of increased imports by China after reports that banks have resumed credit facilities was also supportive. However, negative fundamentals continued to prompt intermittent selling throughout the session. Prices were 11 lower to 12 higher in the morning and 25 higher to 11 lower in the afternoon.

Tussle between weak fundamentals and low prices is continuing. It may be difficult for the market to rise in view of the coming high production months through October and good weather for the US soyabean crop. However, the sharp fall from May could have accounted for these negative factors with the current low prices. Meanwhile, the report on China’s Shangdong Changhua’s resumption of palm oil imports is positive.

Technical view – prices moved into the 2050 – 1950 trading range. Indicators remain negative.  Trend down ; RSI 19.37 ( oversold ) ; parabolic SAR at 1957 ; support 1955 / 1900 / 1850 ; resistance 2050 / 2100 / 2163.

Trading Tips for the Day – 28 August 2014

FKLI will likely open very near yesterday’s close, for the first trade today, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit, 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 strong early gains and eroded to close sharply lower yesterday. Better sellers came in the afternoon, as bearish sentiment dominated again. Selling followed ideas that bearish vegetable oils fundamentals are not yet fully factored in the market. Stronger ringgit which gained more than 0.4 pct vs USD added weight. Market rose early following higher CBT soyoil and China Dalian futures. Prices were 40 to 8 higher in the morning and eroded to 39 lower in the afternoon.

Market remained under bearish pressure with no change in the weak fundamentals. Coming high production months are of concern. Comments by market analyst Mr Dorab Mistry, who reportedly said that prices tend to gravitate towards cost of production during bear markets, probably added some selling pressure today. However, prices are relatively low at present and big sideway trading range the past few days is indicative of some cautiousness.

Technical view – the weak close kept indicators negative. However, prices have moved into a 2050 -1950 trading range.  Trend down ; RSI 18.53 ( oversold ) ; parabolic triggered a “buy” signal at 2045 ; support 1955 / 1900 / 1850 ; resistance 2050 / 2100 / 2163.

Trading Tips for the Day – 27 August 2014

FKLI will 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 day.

For FCPO, market closed lower yesterday after an erratic and choppy session. Prices traded in wide range within Monday’s levels. Selling was prompted by lack of supporting factors with only small gains in China Dalian futures and CBT soyoil overnight. Concerns over slow exports and prospects of increasing production and stocks continued to undermine sentiment. Prices were 2 to 25 lower in the morning and 56 to 14 lower in the afternoon.

Big swings these last 2 days pointed to some cautiousness at current price levels. There are no changes to the bearish fundamentals with higher production expected through October while exports are not seen to be picking up yet. The prospect of a bumper US soyabean crop also added pressure. However, current prices are deemed to be relatively low, which may result in consumers looking towards stock replenishing. Increased use for fuel, with higher biodiesel production in Argentina and Brazil using soyoil, will also lend support.

Technical view – prices turned sideways, holding within the previous day’s range. Indicators remain negative. The oversold situation in the RSI may keep prices sideways in the coming days. Trend down ; RSI 20.96 ( oversold ) ; parabolic SAR at 2045 ; support 1955 / 1900 / 1850 ; resistance 2050 / 2100 / 2163.

Trading Tips for the Day – 26 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, market rebounded after eroding to new low since March 2009 to close sharply higher yesterday. Buying was led by short covering on ideas that market is due for correction from oversold situation. Expectation of improving demand in coming months added support. Market eroded in the morning following poor 1-25 August exports and weakness in CBT soyoil and China Dalian futures. Prices were 3 higher to 45 lower in the morning and rose from 19 lower to 46 higher in the afternoon.

Looks more like technical play today. Fundamentals are unchanged and remain negative. The low August exports will point to sharp increase in stocks as production is expected to rise about 15 pct. Bumper US soybean crop and better global oilseeds supply also weigh on sentiment. There is also concern about China’s imports in view of financing difficulties. However, prices are relatively low and will attract better demand and bottom picking.

Technical view – it was an outside day today which may see further rebound due to grossly oversold situation. However, indicators remain negative.  Trend down ; RSI 22.32 ( oversold ) ; parabolic SAR at 2057 ; stochastic turned up from oversold ; support 1990 / 1955 / 1900 ; resistance 2050 / 2100 / 2163.

Trading Tips for the Day – 25 August 2014

FKLI will likely open a little higher, 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 broke 2000 on Friday, closing at its lowest level since July 2009. Selling was tied to continuing bearish sentiment and absence of supporting factors. Talks of defaults as the market fell sharply since July added pressure. Long liquidation magnified losses. Steady China Dalian olein and soyoil futures had little effect except providing a better opening. Prices were 5 higher to 10 lower in the morning and eroded to 50 lower in the afternoon.

Lack of weekend short covering inspite of big drop this week points to bears dominating. Fundamental outlook remains negative with possibility of default adding to demand concerns. Exports for 1-25 August and full month August are likely to be below July levels. However, current prices should be attractive to induce better demand especially from India which is facing a weak monsoon. Technical view – indicators continue negative. The very sharp drop this last 2 weeks keep market grossly oversold and some upward correction is overdue. Trend down ; RSI 13.32 ( oversold ) ; parabolic SAR at 2083 ; stochastic oversold ; support 1990 / 1950 / 1900 ; resistance 2050 / 2100 / 2163.

Trading Tips for the Day – 22 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 day.

For FCPO, similar pattern of the past few days continued yesterday. There was early support following higher CBT soyoil, China Dalian futures, and ideas that a rebound was overdue. Better sellers surfaced in the afternoon, pressuring market to new lows since 8 October 2009. Quiet cash market and ideas of increasing supplies in the coming months continued to undermine sentiment. Prices were 20 higher to 3 lower in the morning and eroded to 16 lower in the afternoon.

It is difficult to find factors for support at the moment. Fundamentals are weak with high production months in August – October and continuing forecast for bumper US soyabean crop amid very good weather. Even crude mineral oil prices eroded in recent days on better supplies. However, current prices are relatively low and the market will be sensitive to any positive development.

Technical view – prices continuing the down trend towards 2000. Both RSI and stochastic remain grossly oversold and some upward correction is due.  Trend down ; RSI 15.47 ( oversold ) ; parabolic SAR at 2106 ; stochastic oversold ; support 2033 / 2000 / 1950 ; resistance 2100 / 2163 / 2200 / 2250.

Trading Tips for the Day – 21 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, weakness continued with better sellers again in yesterday’s afternoon, closing market at new lows. Selling followed continuing erosion in CBT soyoil ( with e-CBT trading lower ) and easier China Dalian futures. Quiet cash market also undermined support. Cargo surveyors’ export numbers for 1-20 August were on the low sides of guesstimates and added pressure. Weaker ringgit which lost about 0.3 pct vs USD had no effect. Prices were 7 higher to 15 lower in the morning and eroded to 23 lower in the afternoon.

There was little incentive for buying in spite of the relatively low current price. Fundamentals remain bearish with higher seasonal production in Aug – Oct but no sign of strong pick-up in demand. Absence of weather concern in the US soybean crop is also negative. Market may have to look towards increase demand for fuel for any silver lining.

Technical view – market is grossly oversold but indicators remain negative. Shorts may hold positions. Trend down ; RSI 16.07 ( oversold ) ; parabolic SAR at 2124 ; stochastic oversold ; support 2045 / 2000 / 1950 ; resistance 2100 / 2163 / 2200 / 2250.

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.

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