Daily summary

FKLI

*take note that we closed today as a doji after gaping up in the morning.*


FKLI spot month contract closed at 1592.00 up from yesterday's close of 1584.00.

We first gap up to open 1590.50 in line with the strong performance in the US market. Then we proceed to trade within a tight range with a low of 1588.50 and a high of 1592.5.

For me, this is still a positive development in our long biased view of the market. In fact, the other regional markets registered a positive day too such as the Nikkei 225 - up 2.36%, Hang Seng - up 1.83%, Straits Times Index - up 1.49%, Kospi - up 1.02%. Only Shanghai Index - SSE - closed mostly unchanged - down 0.15%. Take all of this and compare with our gain of only 0.32%.

What to expect tomorrow:

We will have to see how the US market will react to the Consumer Confidence data tonight at 10pm our time.
Please bear in mind that we still have some major economic data being released right into the end of the week.

If the US market remains its positive momentum, I think we will proceed to test the cash index high of 1595-97 and then to test the 1600-06 level.

However, if the US and other regional market such as the Europe region and Major Asian market pull back, expect for us to do the same. But I still believe the support levels will hold if such pull back occurs. If it does not, then we might have a conditional change in trend.

I will update the appropriate levels tomorrow morning before the market opens again.

Also, starting Thursday morning, I will use April's FKLI contract levels as traders are starting to roll over in to the said contract.

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FCPO

Another strong day for FCPO contract. We traded to a high of 3497 before pulling back to close at 3481.
I updated in the morning update that our resistance for the day would be around the level of 3492 area.

The uptrend remains intact and we maintain our upside biased view for this contract.

In the second half of the trading session, FCPO broke up and resumed the upward move ahead of the other grains futures. So in a sense, I felt that our FCPO lead the charge up for grains product this afternoon.

What to expect tomorrow:

For Soybean Oil Futures and Soybean Futures, we have covered the gap from the second trading session of last night. I will monitor and see how we do in these market tonight and will update all of you accordingly tomorrow morning to give an indication on how it will affect our FCPO contract.

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Till then, wishing everyone a great evening and trade safe!

Regards,
Tech Trader