Tuesday, April 24, 2012

Market Overview 25th April 2012

Wednesday, 25th April 2012. The FBM KLCI ended slightly lower as regional index manage to stop previous session losing streaks. Other news to follow.

"- U.S. stocks mainly rose Tuesday as investors embraced corporate results but sold shares of Apple Inc. ahead of the iPad maker’s quarterly report after the close. The Dow Jones Industrial AverageDJIA +0.58%  rose 74.39 points, or 0.6%, to 13,001.56. The S&P 500 index SPX +0.37%  added 5.03 points, or 0.4%, to 1,371.97, with telecommunications fronting gains among the index’s 10 sectors and tech stocks faring the worst. The Nasdaq Composite COMP -0.30%   fell 8.85 points, or 0.3%, to 2,961.60."


"- Australian shares finished higher Tuesday after a tame inflation reading spurred hopes for a rate cut, while Japanese stocks declined as a strong yen pressured exporters. Japan’s Nikkei Stock Average JP:100000018 -0.78% fell 0.8% to 9,468.04 and South Korea’s Kospi KR:SEU -0.47%  dropped 0.5% to 1,963.42. Taiwan’s Taiex XX:Y9999 +0.24% advanced 0.2% to 7,498.84. China’s Shanghai Composite CN:000001 +0.01%ended little changed at 2,388.83 and Hong Kong’s Hang Seng IndexHK:HSI +0.26% gained 0.2% to 20,677.16 after a choppy trading session, during which both benchmarks changed direction a few times. Australia’s S&P/ASX 200 indexAU:XJO +0.18%  reversed early losses to end 0.2% higher at 4,360.40, with banks leading after weaker-than-expected inflation data spurred hopes that interest rates may be cut as early as next week."


"-July Soybeans finished up 24 at 1465, 6 1/4 off the high and 27 1/4 up from the low. November Soybeans closed up 10 1/2 at 1352. This was 12 up from the low and 4 off the high. July Soybean Oil finished up 0.2 at 55.69, 0.26 off the high and 0.15 up from the low. July soybeans closed sharply higher on the session and managed to push to a new contract high. July soybeans are now up as much as 61 3/4 cents from last week's lows. More talk of a smaller South America crop due to lower production estimates from key forecasters and concerns that Argentina could slow the crush pace ahead helped support strong gains in soybeans and meal early in the session today. News of potential frost damage to the Buenos Aires region in Argentina last night with lows down to 26 degrees added to the positive tone. Talk that meal offers from Argentina for August and beyond are difficult to come by helped to support. May meal surged higher and led the rally in the complex with nearby meal pushing to the highest level since July of 2009. Stats Canada pegged canola planted area at 20.4 million acres which was slightly below trade expectations but up 8% from last year. Late weakness in the other grain helped pull the market off of the highs into the close."

FKLI- Bearish Momentum Took Off. 


Negative sentiment still haunt local equity market as investors continue to be cautious about possible outcome that will curb equity market performance if some of the major local and U.S companies miss their earning expectation. Stock index retrace about 1.52 points to 1,582.28 level yesterday while index futures for April contract rose about 2 points to 1,576.50 level. The April contract was open surprisingly lower and begin selling-off to the low of 1,558 level in the early morning session. Fortunately, this flash sell-off was able to recover on late afternoon session. Technically, this is how the market re-act when there is a break down below a major support trend line or support level. Downside will be magnified if the index continue to create lower high and lower low formations for this week alone. It is about time market made such correction after recovering since Oct 2011. Furthermore, it is also necessary for these major correction to occur as it will refresh stronger Buying interest when the market resume it's preceding up-trend. Hence, current strategies will be Shorting on daily second pivot point and hold it  For today, support is located around 1,564 while resistance is pegged at 1,589.50 level.

Daily Pivot Point
R2= 1589.50
R1= 1583
S1= 1564
S2= 1551.50

FCPO- Preparing For Recovering ? 

CPO futures ended the day lower amid weaker overnight performance on Soy bean and Soy oil futures. With most fundamental pointed up, market is likely having some correction at the moment. At close, the benchmark July went down about RM12 to 3,463, the day low and high were 3,448 and 3,484 respectively. Technically, this series of correction is suspected to halt judging from yesterday price action. Price have rebound at least for the second time around 3,440~3,448 level shown on hourly chart above. Although it may not seems to be a solid reason to go Long, but it is telling us that Buyers did came back and supported the market from falling when it approaches 3,440~3,448 level. Nonetheless, market is poised to recover further if it manage to breach above today pivot resistance level at 3,482. Unfortunately, we cannot dismissed the Bearish evidence shown by higher numbers of red candles in hourly chart. What traders can do is prepare a price range that consist of immediate support and resistance. By placing 3,482 as immediate resistance level while 3,440 as immediate support level, traders will know what to do if the price breach either ONE of this level because market movement is likely enhance after that. For today, daily pivot for support level is located at 3,446 while resistance is pegged at 3,501.


Daily Pivot Point
R2= 3501
R1= 3482
S1= 3446
S2= 3429

 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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