CPO rising up for Awal Ramadan

FCPO flashing positive signals ahead of Ramadan

FCPO Aug 2013 staged a breakout in the weekly chart today gaining RM9 to RM2380. Intraday volume however fell to 10157 compared to last Friday's 17858 contracts. In the Daily Chart, 3rd month Aug contract price is tagging the SMA 60 -days while daily prices are pushing the Bollinger Upper Band into expansion mode.

Both daily technicals mentioned are positives and could possibly be preludes for better sentiments in anticipation of higher demands ahead of the fasting month of Ramadan which falls on the 10th July.

Trading Strategy

BUY ON WEAKNESS 

Lower liners on the move ...... The FBM Small Cap Daily Chart 08 Jan 2013

LITTLE FELLAS MAKING BIG MOVES

In stark contrast to the FBM KLCI related bluechips, we are seeing a notable shift to second-third liners as investors adopt a 'risk on' approach to investing in the local bourse. As a guage, the FBM Small Cap (which comprises of the top 98% of the Bursa Malaysia Main Board) has advanced over 500 points from its 11,1361.30 low in December.

Yesterday, the FBM Small Cap rose 1.5% or 183.68 points to settle at 11,920.19. In fact, the broad market index broke above the crucial down-trend resistance, and we believe that a major bullish reversal may be at hand. Trading volumes have also picked up in recent days, while the MACD is indicative of a gradual shift in momentum from bearish to bullish. To that respect, we believe improved broad market sentiment should be a boon for small cap traders in the days and weeks to come.

GOODLUCK

FCPO Daily Technical Analysis 28 Dec 2012

The FCPO active month contract ended sharply higher on Thursday, due to electronic soybean oil prices traded higher which had boosted the local market sentiment. At the close, the FCPO price had added 49 pts to 2,479.

Based on the daily chart, a long positive candle had formed on Thursday where it indicated that buyers were aggressive throughout the day.  During the trading sessions, the FCPO price went up to as high as 2,484 where the upside gap nearly covered. As we can see in the chart, the trend is positive as it building up higher high and to rise further, it need to break above the psychological level of 2,500.
Referring to the MACD histogram, a rounding top is forming up. As always, intraday support and resistance levels will be eyed.

Technical indicators

MACD= Positive, ADX= Positive,

Intraday Technical Support & Resistance for 28th Dec 2012

1st support 2,420; 2nd support 2,380-50

1st resistance 2,490; 2nd resistance 2,550-70

 

GOODLUCK

Technical Analysis : FBMKLCI 30-08-2012 / 富时大马综合指数 2012-08-30

FBMKLCI 30 August 2012

On Thursday, the FBMKLCI was mostly traded in a narrow range, with the exception of a rally after 4pm, which pushed the FBMKLCI up to 1650.85 points. However, at the close, the FBMKLCI only managed to secure a gain of 0.53 of a point, closing at 1646.11 points. Resistance for the FBMKLCI remains at 1655 while the support is the 14, 21, 31 EMA, as indicated by A.

 

As indicated by B, total market volume increased 8.9%, with volume above the 40-day Volume Moving Average. But due to the strong profit taking activities, losers outnumbered gainers by 453 to 280, the higher volume may actually imply stronger selling pressure.

 

As indicated by C, the MACD histogram is still falling, suggesting that the short-term movement of the FBMKLCI is still losing strength. The weakening short-term movement is expected to continue until the MACD histogram should form a Rounding Bottom.

 

In conclusion, the FBMKLCI is still consolidating, while testing its dynamic support of the 14, 21, 31 EMA. Technically, the uptrend is still intact, but if profit is still strong, it would have a negative impact to the sustainability of the uptrend.

 

富时大马综合指数 2012-08-30

富时大马综合指数周四都在窄幅中波动，惟在下午四时后一度上扬至1650.85点的全日最高。不过，综指最后还是只能以1646.11点挂收，按日微扬0.53点。综指阻力依然是1655点的水平。支持水平则是如图中箭头A所示的14、21、31天EMA动态支持线。

 

如图中箭头B所示，马股总成交量周四增加8.94%，而成交量也继续维持在40天的成交量平均线（VMA）的水平以上。不过，由于马股套利活动非常的活跃，全日下跌股项远远超过上升股项（453跌/280涨），因此成交量的增加也反映出投资者踊跃套利的活动。

 

如图中C圈所示，平均乖离振荡指标（MACD Histogram）继续的下滑，这表示综指短期的走势还是稍微偏弱的，直到平均乖离振荡指标形成圆底（Rounding Bottom）为止。

 

总的来说，综指继续在盘整格局中，同时试探14、21、31天EMA的动态支持线。以技术而言，综指涨势虽然还未受到破坏，但是市场的套利活动还是相当的活跃。若套利活动继续偏高的话，那将会对马股维持在涨势带来威胁。

 

祝你好运

Robust Demands Boost CPO >>> Mild Resistance Seen @ 3100

FCPO Daily technical analysis:

 
The FCPO active month contract ended sharply higher and it was able to maintain its upward posture throughout the day as the market sentiment was boosted by positive palm oil export figure released by ITS.

Moreover, tight supply outlook for vegetable oil markets had pushed up the FCPO price rose to nearly 9.2% from the lowest level in just three days. At the close, the FCPO price was up 116 pts or 3.92% to 3,078.

From the daily chart, price gapped higher once it opened as it was buoyed by overnight CBOT soybean oil price soared more than 3%. As we can see in the chart, a long positive candle formed on Wednesday where it indicated that buyers were aggressive throughout the day. Trend remains positive and this was also confirmed by the MACD indicator. However, there are two downside gaps left uncovered at the moment. Since it had successfully formed up a double bottom pattern, the next step is to keep an eye whether it is able to form up a ‘W’ shape in the long term trend.

Referring to the MACD Histogram, it successfully builds up in the positive zone. Meanwhile, the MACD line is crossing above the signal line where the bullish sentiment is building up in the medium term. As always, intraday support and resistance levels will be eyed.

Technical indicators:

MACD= Positive

ADX= Positive

Intraday technical support & resistance for 23rd Aug 2012:

1st support 3000

2nd support 2960-30

1st resistance 3130

2nd resistance 3170-3195

Technical Analysis >>> Soybean Oil May (ZLK12)

May soybean oil closed up 151-pts. at 55.10.

May soybean oil closed higher due to short covering on Friday due to spillover strength from soybeans, corn and wheat. The high-range close sets the stage for a steady to higher opening when Monday's night session begins trading. 

Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Multiple closes below last Thursday's low crossing at 53.66 would open the door for a test of March's low crossing at 52.88. 

If May renews this year's rally, the 62% retracement level of the 2011-decline crossing at 56.42 is the next upside target. 

First resistance is Monday's high crossing at 55.82. 

Second resistance is the 62% retracement level of the 2011-decline crossing at 56.42. 

First support is Thursday's low crossing at 53.59. 

Second support is March's low crossing at 52.88.

 GOODLUCK

ZLBT FKLI Views

FKLI Set For Profit Takings Before Next Upside
The index futures contract finally broke its tough resistance of 1552 and traded higher to form a long white candle. Buyers deemed to buy on any retrace to safeguard the support line of 1552. Despite daily RSI poising towards the overbought territory, it is unlikely to pressure the market in the short term. Also, futures has filled the falling gap of Jan 21 and completed the major wshaped recovery span through Jan-May. To the upside, resistance pegged at 1574

FBMKLCI hit its four months high and settled 1% higher, buoyed by regional strength and rally of the utilities giant TNB upon government approval to raise electricity prices. Also, financial counters had kept market buoyant as banking heavyweights Maybank and CIMB announced takeover bid for RHB Cap, which set to become the biggest takeover battle in Malaysia's corporate history. Besides that, Malaysia will be upgraded to Emerging Markets by FTSE effective today. Sentiment likely to turn positive today as traders initiate new position following series of new catalysts in local market..

Strategy

Opportunistic Sell into profit takings near 1562+/-.

Keep a handy cutloss just in case

HAPPY TRADING