Wednesday, January 16, 2013

First Sign Of Retracement On FKLI 17th Jan 2013

Thursday, 17th Jan 2013. Local equity index losses some ground on profit taking after it rose to all time high around 1,700 level last week. Other news to continue.

"- A rebound for Apple Inc. buoyed the technology sector on Wednesday, while Wall Street adopted a generally wary stance in considering results from several banks including J.P. Morgan Chase & Co. and Goldman Sachs Group Inc. The Dow Jones Industrial Average DJIA -0.17% fell 23.66 points, or 0.2%, to 13,511.23, with 16 of its 30 components losing ground.
The S&P 500 index SPX +0.02% added less than half a point to 1,472.63, with telecommunications hit the hardest and the recently beaten-up technology sector the best performer of its 10 major industry groups."

"-Asian markets mostly declined Wednesday, with Japanese stocks skidding on a firmer yen and shares in Hong Kong weakening as financials lost ground. The Nikkei Stock Average JP:100000018 -2.56%  tumbled 2.6% to 10,600.44, after ending at a level not seen since April 30, 2010 in the previous session. Hong Kong’s Hang Seng Index HK:HSI -0.10%  declined 0.1%, the Shanghai CompositeCN:000001 -0.70%  dropped 0.7%, South Korea’s Kospi KR:SEU -0.32%  slid 0.3% and Taiwan’s Taiex XX:Y9999 -0.83% fell 0.8%. Australia’s S&P/ASX 200 index AU:XJO +0.46% closed up 0.5%."

 "-Oil futures climbed Wednesday, recouping losses from the previous session and then some to finish at their highest level since Sept. 18. The U.S. Energy Information Administration reported an unexpected decline of 1 million barrels in crude inventories for the week ended Jan. 11. February crude oil CLG3 -0.08% rose 96 cents, or 1%, to settle at $94.24 a barrel on the New York Mercantile Exchange."

"-January Soybeans finished up 25 at 1438 1/2, 1/2 off the high and 26 1/4 up from the low. November Soybeans closed up 13 3/4 at 1297. This was 17 up from the low and 3 off the high.
January Soymeal closed up 7.2 at 419.1. This was 8.4 up from the low and -7.2 off the high. January Soybean Oil finished up 0.44 at 51.31, 0.19 off the high and 0.63 up from the low. March soybeans traded sharply higher on the day on support from a stronger meal market and oil saw gains as well. Thoughts that China has secured additional cargos this week helped to support along with a drier forecast for Argentina and Southern Brazil. Northern Brazil continues to see beneficial rainfall but scattered showers in Mato Grosso could delay harvest activity this week. The CIF basis was steady midday on the jump in futures but interior basis levels remain historically high as traders attempt to drum up cash grain movement in the country. Crush margins remain positive but have contracted modestly due to the firm basis levels. The tight domestic supply outlook and strong pace of demand continues to favor the bulls but some suggest that the possible bumper crop in South America along with a shift in demand to the Southern Hemisphere could limit gains as we move into February and March."

FKLI- Bulls Are Losing Steam, Temporary. 

Stock index and index futures are starting to retrace recently after it rose to record high last week. On initial assessment, market is likely going down for some profit taking for the coming week and likely resume its preceding uptrend if the index futures could recover above 1,690 level. Malaysia might be shielded from external market uncertainties at the moment as we still can expect robust GDP growth for this quarter. Technically, short term direction is likely remain negative judging on the lower high and lower low candle formation formed on hourly chart. If you dialled into hourly chart, the first lower high was spotted on 9th Jan and lower low was formed on yesterday when the market breached below 1,680. These Bearish candle formation often lead to the beginning of market weakness, and it is likely prolong after the market has rally continuously for few weeks. For today, pivot support for Jan contract is located around 1,666 while resistance is pegged at 1,685 level.

Daily Pivot Point
R2= 1692
R1= 1685
S2= 1666

FCPO- Parabolic Recovery, Upside Limited By Weak Fundamental. 

Palm oil futures continue to make some recovery yesterday as previous Short traders cover their positions due to sudden subside in stock fear. Words out that palm oil stocks level maybe halt from rising due to slower output caused by rainy season. At close, the new benchmark Apr went up about RM13 to settle at 2,428 level, the day high and low was 2,444~2,423 while volume was recorded thinner than usual at 15,882 lots. Technically, compare on the swiftness when it corrected palm oil futures gains was not that incredible as it only rose less than 1% per session  starting last Friday session. Palm oil gains was rather a struggle to go up, as if the Bulls are still hesitating to charge, well most of time. Nonetheless, there is no doubt that market is likely to recover further on intraday basis judging on Bullish candle formation formed on 15 minutes to hourly chart. There was a more higher lows and higher highs spotted in 15 minutes chart compare to other higher time frame chart. Another key caused for this sudden Bullish momentum might be due to Soy oil futures rally for the past two days. For today, importance pivot level for the benchmark Apr on support is located around 2,410 while resistance is pegged at 2,452.

Daily Pivot Point
R2= 2452
R1= 2440
S2= 2410
 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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