Monday, April 23, 2012

Market Overview 24th April 2012

Tuesday, 24th April 2012. The equity index went on Selling spree throughout yesterday trading session with no special occasion or bad news reported on the market. Other news to follow.

"-U.S. stocks went into widespread retreat Monday as investors reacted to political uncertainty in Europe and a report alleging that Wal-Mart Stores Inc. hindered an investigation of bribery in Mexico. The Dow Jones Industrial Average WMT -4.66%  ended down 102.09 points, or 0.8%, at 12,927.17. The S&P 500 Index SPX -0.84%   declined 11.59 points, or 0.8%, at 1,366.94, with consumer staples battered the most among the index’s 10 industry groups. All closed with losses; energy performed the best. The Nasdaq Composite Index COMP -1.00%  tumbled 30 points, or 1%, at 2,970.45."


"-Asia markets fell Monday after data showed Chinese manufacturing activity continued to contract in April, albeit at a smaller pace, with investors also wary before the outcome of French presidential elections and upcoming global economic events. Hong Kong’s Hang Seng Index HK:HSI -1.84%  dropped 1.8% to 20,624.39, China’s Shanghai Composite CN:000001 -0.76% fell 0.8% to 2,388.59 and Australia’s S&P/ASX 200 index AU:XJO -0.32%  fell 0.3% to 4,352.40. Japan’s Nikkei Stock Average JP:100000018 -0.20%  lost 0.2% to 9,542.17, South Korea’s Kospi KR:SEU -0.10% slipped 0.1% to 1,972.63 and Taiwan’s Taiex XX:Y9999 -0.35%  shed 0.4% to 7,481.09. Losses in some Asian markets such as Hong Kong accelerated as European markets tumbled in early trading Monday."


"-July Soybeans finished down 8 1/2 at 1441, 16 1/4 off the high and 1 1/4 up from the low. November Soybeans closed down 14 1/2 at 1341 1/2. This was 1 1/4 up from the low and 22 3/4 off the high. July Soybean Oil finished down 0.79 at 55.49, 0.87 off the high and 0.16 up from the low. May soybeans closed moderately lower on the session and gave back part of the strong gains from Friday. With a bearish set-up for commodities in general today (higher US dollar, sharply lower trade in the stock market and weaker action for metal and energy markets) and ideas that part of the late rally Friday was option expiration inspired, the market saw some early selling to push the market moderately lower on the day. Talk of good planting weather for the US for the next few weeks and a continued flow of new export sales news helped to keep the trade choppy and helped to pressure the new crop November soybeans. Exporters reported a sale of 165,000 tonnes of US soybeans to unknown destination for the 2011/12 time frame helped to provide some underlying support; especially for old crop contracts. Weekly export inspections came in at 12 million bushels which was sharply below trade expectations and compares with 11.3 million bushels necessary each week to reach the USDA projection."

FKLI- Broke Down The Major Support Level. 


Both stock index and index futures went down substantially yesterday without any serious bad news on the market. It was a major shares dumping activities as investors just decide to shed their position in the equity market as rumours on Malaysia upcoming general election emerge. Contrary to what most self fulfilling prophecy that market should be doing good or "dressing" prior to the general election, things are much more different this time. In technical perspective, there is a new development on our market direction. With major support area breached for both equity index, we are expecting more weakness to come for this week. The game plan have change to Shorting the market when it attempt to recover close to the pivot resistance point. Furthermore, market is poised to create more lower highs and lower lows formation soon. For today, support is located around 1,562.50 while resistance is pegged at 1,584.

Daily Pivot Point
R2= 1593.50
R1= 1584
S1= 1568.50
S2= 1562.50

FCPO- Sellers Pressured Price Down, Likely Temporary. 

CPO futures closed lower after it open gap up in the morning session amid recent recovery on Soy oil yesterday. Palm oil futures early recovery was also sparked by previous Friday promising closing value but unfortunately, profit taking activities were interfering throughout yesterday trading session, forcing the benchmark July to closed RMxx lower to xx, the day high and low were xx and xx. Technically, by looking at daily chart, the chances for the market to recover further is still higher even though price travel lower about half of the Bullish engulfing candle formed on previous Friday. But on smaller time frame, things are much more different as you can assume on hourly chart, the benchmark July to retrace when it aprraoch its resistance trend line thus formed lower highs formation after the market retrace from the gap up in the morning session. Downside risk will be magnified if the price could breach below the support trend line shown on hourly chart above. For today, support is located around 3,439 while resistance is pegged at 3,539.


Daily Pivot Point
R2= 3539
R1= 3507
S1= 3457
S2= 3439

 Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.

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