Technical Outlook >>> December Soybean Oil Futures (ZLZ12 CBOT)

TECHNICAL ANALYSIS
Soybean Oil ZLZ12 (Dec)
December soybean closed lower on Monday as it extended the decline off July's high. The mid-range close sets the stage for a steady opening when Tuesday's night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that additional weakness is possible near-term.

If December extends the decline off July's high, the reaction low crossing at 51.36 is the next downside target. Closes above the 20-day moving average crossing at 53.81 are needed to temper the near-term bearish outlook.

First support is today's low crossing at 51.84. Second support is the reaction low crossing at 51.36. 

First resistance is the 20-day moving average crossing at 53.81. Second resistance is July's high crossing at 56.00. First support is today's low crossing at 51.84. Second support is the reaction low crossing at 51.36.

HAPPY TRENDING

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FKLI Market Outlook 17/02/09

FKLI Market Outlook 17/02/09

Sentiment remained weak today in line with broad sell-off in regional markets on deteriorating macroeconomic fundamentals despite comments made by Finance Minister Najib Razak, stating that the 2nd stimulus package plan will be bigger and more comprehensive. The KLCI ended marginally lower at 898.53, -0.95% led by plantation stocks (-1.7%) and financial stocks (-1.08%) as compared to STI shed 42 pts or -2.55%, Nikkei 225 fell 104.66 pts or -1.35% and HSI plunged 510 pts or -3.79%.

Meanwhile, the FKLI was constantly sliding throughout the day and settled at the low of 886.5, -22.5 pts or -2.48%. The basis has widen to 12 pts discount against cash market.

As noted previously, a breach below 900 psychological level indicates that the trend has turned to bearish mode coupled with expectation on more negative report such as housing industry, manufacturing and unemployment data to be released in US this week. For today, further downside is expected and any recovery is viewed as relief rally. For instance, the resistance is at 899 while the support is pegged at 881 (SMA 50). Investors are recommended to go for short as recent rally is seemed to be weakening and can’t sustain much longer.

HAPPY INVESTING