Daily Market Summary

Alright here are the market summary:

KLCI

Here are the traded prices for the FKLI April Contract:

Open at 1581.50 down from 1586.00 from the previous day.
Close at 1582.50
High      1585.00
Low      1587.00

This morning we opened lower in line with the lower close in the US market. Then we quickly traded up to 85 and in a flash, came back down to the 78-79 levels. In our morning update, we identified 1580 and 1578 as our point of support.

Prices tested both levels and the low was in fact 1578.00.

Then prices traded around the 79-80 levels for a period of time and couldn't break down further. So if you were scalping and wanted to go long, this was an opportunity to do so and your profit target would have been around 2-3 points max.

Why only 2+ points you may ask?

This is because of a 3 main reasons:

1) The general trend indicated a pullback from the recent up move.
2) The other regional market are in fact trading lower today.
3) Sellers would look to ride the down momentum by selling the bounce up each time.

So it is more safer to just scalp 2 points and keep my profit as the chance of sellers coming in to sell taking cue from the regional weak performance was likely.

So here we are.. Trading around the area of support.. will this break down below the area of support? if yes, can the sellers maintain the selling pressure enough to push this down far enough? Or we will hold here and continue the uptrend to test the 1600-06 level? We'll leave that for tomorrow after we have seen how the overseas market has performed. :)

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FCPO

 

Ok here are the traded prices for our FCPO.

Opened 3460 lower from previous day's close of 3473
Close    3456
High     3477
Low      3445

In our morning update, we identified the areas of support and resistance was around 3467, 3436 and 3418 level.

After price open below our first level of support, it was able to trade around the 50s level for most of the morning and only traded to a low of 3445 which was quite near our second level of support. We were mostly trading in a tight range today.

What this can mean is that the buyers and sellers are quite balanced today and couldn't push the market strongly into either direction. Take note that the daily closing bar look like a Doji - give and take a few points.

In the Globex trading for the Soybean Oil and Soybean Futures, it was largly the same and trading withing a small range to with no immediate indication of any direction.

Wheat and Corn futures are actually a bit bearish looking and are making new lows from recent trades. So if these two contracts continue its march down further, it will most likely drag the Soybean Oil and Soybean Futures down along with it which will in turn effect our FCPO prices.

But we are not here to be prophet or fortune teller, talking ahead before the market has even moved. Doing that is called Gambling.

We are here to trade based on sound information and judgment from what the price action is telling us and based on sound technical analysis.. not intuition and guesses..

So we will see how the 4 cme grains product that we are tracking perform in the cash hours tonight and identify its effect on our local FCPO tomorrow.

Till then, have a great evening all. If you have any suggestion, do not hesitate to leave me an email or pm me. My contact information is down below in the About Me section.

Ciao!

Best Regards,
Tech Trader.