Monday, July 8, 2013

FKLI Travelling On Higher Note 8th July 2013

Monyda, 8th July 2013. The index futures for July contract continue to show resilient travelling at upper range currently, Shorting opportunities will appear if it show sign of fading. Other news to follow.

"- U.S. stocks closed with strong gains Friday after a choppy session, helped by a stronger-than-expected jobs report. The S&P 500 SPX +1.02% rose 16.48 points, or 1%, to 1631.89, while the Dow Jones Industrial Average DJIA +0.98% added 147.29 points, or 1%, to 15,135.84. The Nasdaq Composite COMP +1.04% advanced 35.71 points, or 1%, to 3,479.38."

"- Most Asian stocks got a boost Friday after Europe’s two biggest central banks signaled an intent to maintain accommodative policy, with Japanese equities clinching solid weekly gains as the U.S. dollar climbed back above the 100-yen level.

Japan’s Nikkei Stock Average JP:NIK +1.10%  jumped 2.1% during the session. The benchmark rose 4.6% this week, its third consecutive week of gains. Australia’s S&P/ASX 200AU:XJO -0.03%  advanced 1% and the Shanghai Composite IndexCN:SHCOMP +0.05%  edged up 0.1%, while Hong Kong’s Hang Seng IndexHK:HSI +1.89% gained 1.9%, erasing losses accumulated earlier in the week."

"-Oil futures finished above $103 a barrel on Friday, with concerns over the potential disruption of the Middle East oil trade fueling the biggest weekly percentage gain in more than two years.
Better-than-expected U.S. employment data for June also contributed to oil’s rally, with the growth in new jobs helping to raise the prospects for energy demand. Crude for August delivery CLQ3 +0.18% gained $1.98, or 2%, to settle at $103.22 a barrel from Wednesday’s settlement on the New York Mercantile Exchange, which was closed Thursday for the Independence Day holiday."

"-August Soybeans finished down 9 1/4 at 1432, 11 1/4 off the high and 1/4 up from the low. November Soybeans closed down 22 1/2 at 1228 1/4. This was 3/4 up from the low and 23 1/4 off the high. August Soymeal closed down 4 at 428.6. This was 0.6 up from the low and 3.7 off the high. August Soybean Oil finished up 0.03 at 47.14, 0.39 off the high and 0.39 up from the low. The soybean market traded lower for most of the session but the July contract traded higher on the day on strong cash markets and no delivery intentions. Exports sales data was seen as supportive to meal and soybeans but negative for the oil market. Net weekly export sales for soybeans came in at 120,600 tonnes for the current marketing year and 249,100 for the next marketing year for a total of 369,700. As of June 27, cumulative sales stand at 102% of the USDA forecast vs. a 5 year average of 99%. Net meal sales came in at 116,300 tonnes for the current marketing year and 4,200 for the next marketing year for a total of 120,500. Old crop sales were up noticeably from the week prior and up 74% from the 4 week average. The strong sales report suggests crush needs to slow in the US as supply dwindles. Cumulative meal sales stand at 100% of the USDA forecast vs. a 5 year average of 86.5%. Net oil sales came in at a sluggish 1,600 tonnes for the current marketing year and cumulative sales stand at 89% of the USDA forecast vs. a 5 year average of 80%. Sales of 8,000 tonnes are needed each week to reach the USDA forecast. Argentina and Malaysia oil supplies continue to penetrate the market at lower prices which is likely to keep downward pressure on US oil prices until crush slows down and stocks can contract."

FKLI- traveling on high note, upper range.

Stock index is traveling on upper range above 1,770 for the moment on various bullish sentiment. Local and foreign fund were still buying the popular main board stocks for safer bet. Meanwhile the positive performance on US stock market also help support overall bullish momentum for the past week. The federal reserve motion to withdraw their bonds buying programme does not jeopardize much market sentiment. Technically, the stock index bullish momentum does not come to pause yet but many would anticipate slight pullback from this upper range area. Traders are advise to look for any sign of market pullback sign such as lower than expected opening session today or lower high and lower low candle formation on lower time frame such as hourly chart. For today, pivot support for spot month contact is located around 1,771, while resistance is pegged at 1,788.

Daily Pivot Point
R2= 1788
R1= 1781.5
S1= 1771
S2= 1767

FCPO - Up Up And Away ?

Palm oil Futures is steadily recovering to higher ground since last Thursday. Market participants are bullish about the expectation for the stockpiles to go down slightly plus steady inflow demand from India and China due to Aidilfitri festive season one month from now. Palm oil price is likely to recover higher this July on promising export shipment that line up for the month of June. Technically, the benchmark Sept is prep for further upside after the bullish higher high and higher lows candle formation formed on hourly chart since last Thursday. Those bullish candle formation was the initial sign for more reliable upside signal after the market tanked for few weeks since middle of June. This might be the early sign for traders to go Long and maybe conveying back most of the gap down gap or area.  For today, pivot support for the benchmark Sept is located around 2,357, while resistance is pegged at 2,399~2,400.

Daily Pivot Point
R2= 2414
R1= 2399
S1= 2357
S2= 2330

 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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