Daily Market Commentary

Good evening all,

Alright what a day..

Lets start with the FKLI.

The March FKLI contract opened at 1589.00 down 3 points taking the cue from the US market. Then we traded to a high of 1591.00 before slowly drifting to a low of 1584 and closing at 1585.50 - around the support level we have indicated this morning 1585-83 area in the morning update.

The April contract opened at 1589.50, traded to a high of 1591.5, then to a low of 1584.00 and closing at 1586.00

We have Core Durable Goods Orders tonight in the US at 8.30pm. Then we will see how the market react and close tonight before looking at the probably levels tomorrow.

Kindly take note that starting tomorrow, we will be using the April FKLI contracts for our levels.

On a side note, for the S&P500 futures - ES - we have touch the top of the channel of 1419.75 last night. You can refer to the chart here.
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FCPO

Our June FCPO contract opened lower in line with the drop in the other CME grains product.

We opened lower at 3466 and traded to a low of 3463 before rallying up all the way to 3494 to close at 3473.

Take note that price opened and held near our expected support of 3467 which we have indicated during pre-market in our morning update.

I am still biased on the long side for this contract. However, we will have to see how the CME grains namely Soybean Oil Futures, Soybean Futures, Wheat and Corn Futures do tonight.

Corn Futures has broken down from its smaller triangle pattern but should find some support on the 625 levels.

Wheat is still trading in the range of 676-631 levels.

Only Soybean Oil and Soybean Future's weekly bar is still green.

If Corn demonstrate further selling pressure, it will definitely affect the Soybean, Soybean Oil and wheat Futures. This will further be a drag and hinder the performance of the other contracts including our FCPO.

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Stay tuned for tomorrows report on US market for stocks index and also the CME grains products before the market open and the relevant possible levels of support and resistance.

Have a great evening all!


Best Regards,
Tech Trader