Tuesday, December 18, 2012

New Weekly High For FKLI, 19th Dec 2012

Wednesday, 18th Dec 2012. FKLI is recovering strongly after the market survive and rally above previous high above 1,658 level yesterday. Other news to follow.

"- U.S. stocks extended gains into a second session Tuesday, rising on signs of progress on Capitol Hill in reaching an accord to avoid steep spending cuts and tax increases next year. Tallying another triple-digit rise, its first such two-day streak since July, the Dow Jones Industrial Average DJIA +0.87% finished at 13,350.96, up 115.57 points, or 0.9%. The S&P 500 Index SPX +1.15% gained 16.43 points, or 1.2%, to 1,446.79, with technology and energy leading gains among its 10 industry sectors.

 The Nasdaq Composite IndexCOMP +1.46% gained 43.93 points, or 1.5%, to 3,054.53.

"-Most Asian stocks climbed Tuesday on signs of progress in U.S. budget talks to avert the fiscal cliff, with exporters and financial firms driving Japanese shares to their highest level in more than eight months. The Nikkei Stock Average JP:100000018 +0.96%  rose 1% to 9,923.01, a closing level not seen since early April. The advance builds on gains from the previous session, when a landslide election victory for the Liberal Democratic Party (LDP) sparked fresh optimism for the introduction of deflation-fighting policies. South Korea’s Kospi KR:SEU +0.51%  and Australia’s S&P/ASX 200 AU:XJO +0.48%  added 0.5% each, Taiwan’s Taiex XX:Y9999 +0.16% rose 0.2% and China’s Shanghai Composite Index CN:000001 +0.10% inched up 0.1%. Hong Kong’s Hang Seng IndexHK:HSI -0.08% slipped 0.1%, paring some of this month’s gains."

"-Crude-oil futures settled near $88 a barrel on Tuesday, scoring gains for a third-straight session as optimism that U.S. politicians will be able to strike a deal to avert the fiscal cliff and upbeat economic data buoyed prospects for oil demand. Crude oil for January deliveryCLF3 +0.05% climbed 73 cents, or 0.8%, to settle at $87.93 a barrel on the New York Mercantile Exchange, after trading as high as $88.16. Prices have now tallied a three-session gain of 2.3%."

"-January Soybeans finished down 30 1/4 at 1466, 35 3/4 off the high and 3 1/2 up from the low. March Soybeans closed down 27 3/4 at 1460 1/2. This was 3 1/2 up from the low and 33 1/4 off the high.
January Soymeal closed down 10.5 at 444.9. This was 1.4 up from the low and 12.5 off the high. January Soybean Oil finished down 0.62 at 49.17, 0.9 off the high and 0.07 up from the low. January soybeans traded sharply lower on the day after the USDA reported that China canceled 300,000 tonnes of US soybeans for 2012/13 and an unknown destination canceled 120,000 tonnes of US soybeans. At the same time, the USDA than reported that US exporters sold 110,000 tonnes of soybeans to an unknown destination for the same marketing year as the cancelations. The sale of soybeans offered very little support as the market found greater importance in the cancelations. Favorable weather conditions for Brazil continue add a negative bias towards price direction long term but an uptick in rainfall for Argentina over the next couple of weeks is raising concerns that additional planting delays may be seen. Most traders feel that any major disruptions to soybean planting or harvest in South America could be a positive for prices in 2013. "

FKLI- Gaining On Momentum, Bears Surrendered. 

Stock index continue to show sign of recover despite regional economy uncertainties and deepening concern over U.S fiscal cliff issue. On the contrary, recent market positive sentiment might be contributed by the news of U.S will likely avoid fiscal cliff on the next budget setting. At close, the FBM KLCI surged about 10.86 points to 1,659.44 level while spot month index futures went up about 17.50 points to 1,664 level, closing at the day high. Coming back stronger than ever the Bulls seem to have more strength to recover further judging from recent higher low and higher high candle formation formed on daily and hourly chart. The bears have to surrendered their place at the market at the moment as institutions fund are still keen to accumulate stocks towards the end of the year. According to seasonal market cycle, most trading participants will agree that this would be another temporary rally or year end rally, there always profit taking after the market hit a new high again. Based on technical perspective, there was no Short set up as the spot month contract did not breach below the previous low or lower trading range around 1,643~1,640 level. Without the succession for the price to go down below that lower trading range, it could mean that the Bulls are still in control. For those who have Shorted, it is best to Stop out or cut loss your position above if the market went above 1,660 level and turn your position to Long. This week, market is likely continue to rally and might re-test the previous all time high at 1,678 level next week.

Daily Pivot Point
R2= 1674
R1= 1669
S1= 1654
S2= 1645

FCPO- Recovered Slightly From Previous Major Support.

Rallying about RM60 from previous major support around 2,220 level (based on Feb contract), the path to further recovery for palm oil futures remain a question mark at the moment. It was a mixed up market sentiment as one side of the trading participants are Bullish about the new palm oil export tax scheme and another side of traders are less convince the new export tax scheme would do any improvement over the record high palm oil  stocks level (New export tax: Free for palm oil price below RM2,250). Hence, that might explain the reason behind why the market has been trading within a RM20~RM40 points range this week. Technically, the clue that we have for the moment would be short term trading range and medium term market direction. For short term or intraday basis, the benchmark March is likely hovering within 2,331~2,377 level at the moment. On medium perspective, market is still susceptible to weakness as there was no noticeable higher high formed on the benchmark March yet. Traders can expect weaker price action for palm oil futures if the January Soy oil stay below 49.80 per pound.  For today, pivot support for March contract is located around 2,319 while resistance is pegged at 2,353.

Daily Pivot Point
R2= 2365
R1= 2353
S1= 2330
S2= 2319
 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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