FCPO Daily:Market defended at 2250

Consolidation phase extended in near term. We continue to look for the immediate resistance at 2400-2414 followed by the 2427-2451 (gap left over on 9 Sept, 2008). For downside, immediate support is at 2250-2240 followed by 2200.

Trader's Comment: CPO futures ended mix and steady

CPO futures ended mix to steady after a rather choppy trading day. Initially, benchmark Dec08 opened RM25 higher at 2330 but the gains were short-live due to lack of follow through buying. Then, it slides to hit intra-day low at 2251. Later, it rebounded to close at 2284 for the morning break as bargain hunting buying activities emerged. In the afternoon, it resumed trading with a steady tone tracking a steady crude oil prices. Benchmark Dec08 being push to hit 2357. However, meeting some selling resistance on talks that 1-25 Sept08 export is likely to be lower by 10%-12%. At closed, it slides to settle RM13 higher at 2318. News that Bursa Malaysia Derivative Clearing raise the margin deposit to RM11,500 effective this Friday due to next week’s Hari Raya holidays, prompted some players to stay sideline. Total daily volumes decline to 8,458 contracts changed hands.

FKLI Daily: Bear taking a breathe

A white candle printed with prices almost closed at the day high had given a little hope to the bull. Nevertheless, more strength is needed in order to stay out from the downtrend zone. As for now, we continue to look for the immediate resistance at 1036-1039 and downside support is at 1005-1000.

KLSE Daily: remains same

Market ended in positive territory yet the rebound was not strong enough to change the immediate daily technical landscape as market remained stayed below the downtrend zone. Consolidation phase likely to continue. Resistance and support remained at 1039-1040 and 998-1001 level respectively.

FCPO Hourly: 2250-2260 managed to defend?

Market tried to defend at 2250-2260 after prices unable to sustain at the higher end. Consolidation phase will be extended in near term. We currently look for the immediate resistance at 2404-2408 followed by 2427-2452 (gap left over on 9th Sept, 2008). To the downside, immediate support is pegged at 2251-2241 followed by 2200.

FKLI Hourly: in consolidation phase

Consolidation phase continues with market likely to move in range 1039-1000.

KLSE Hourly: Range bound mode extended

Nothing much changes on the immediate technical landscape as market stuck in range bound mode. We continue to look for the upside resistance at 1040-1042 (remaining gap left over on 15 Sept, 2008). Downside support is pegged at 1009-1008.

Breaking News-RTRS-Indian palm oil importers face Malaysian ire-paper

NEW DELHI, Sept 23 (Reuters) - Indian traders who reneged on contracts to buy Malaysian palm oil after prices fell are sourcing the cooking medium indirectly from state trading agencies, evoking protests from a Malaysian firm, the Hindu Business Line newspaper reported on Tuesday.
The Malaysian company, which was not named, has written to state-owned Indian trading firms like MMTC Ltd , State Trading Corp of India and PEC Ltd saying they should not allow defaulters to buy imported oils, the daily said.

Trader's Highlight

DJI-NEW YORK, Sept 23 (Reuters) - U.S. stocks fell on Tuesday on fear that congressional wrangling could delay a proposed $700 billion plan to rescue the financial sector, increasing worries about the struggling U.S. economy.

But index futures surged in extended trading after Warren Buffett's Berkshire Hathaway surprised investors with a $5 billion investment in Goldman Sachs Group.

The Dow Jones industrial average <.DJI> fell 161.52 points, or 1.47 percent, to end at 10,854.17. The Standard & Poor's 500 Index <.SPX> slid 18.87 points, or 1.56 percent, to 1,188.22. The Nasdaq Composite Index <.IXIC> dropped 25.64 points, or 1.18 percent, to 2,153.34.

NYMEX-NEW YORK, Sept 23 (Reuters) - U.S. crude oil futures fell on Tuesday as the dollar rebounded and as gasoline futures fell amid concerns about demand and a slowing economy as Washington looked at a proposal to bail out the financial sector.
On the New York Mercantile Exchange, November crude fell $2.76, or 2.52 percent, to settle at $106.61 a barrel, trading from $104.05 to $109.58.

CBOT-SOYBEANS - November down 18 cents at $11.87 per bushel, January down 18-1/4 at $12.03-3/4.

Profit-taking after Monday's strong rally, led by declines in crude oil and gold. Markets remain on edge after U.S.government announced a planned $700 billion bailout of financial companies.

SOYOIL - October down 1.81 cents at 47.74 cents per lb.Profit-taking and pressure from weak crude oil. Meal/oil spreading adds pressure.

FCPO-KUALA LUMPUR, Sept 23 (Reuters) - Malaysian crude palm oil futures fell as much 2.9 percent on Tuesday, erasing some of the week's gains as weaker crude oil prices spilled over to vegetable oil amid fears of slowing overseas demand.

The benchmark December contract on the Bursa Malaysia Derivatives Exchange settled down 39 ringgit at 2,305 ringgit ($676) per tonne after falling to an inter-session low of 2,277 ringgit.

DJI Daily: tested support at 10827

Market dropped further and tested the immediate support at 10827. Consolidation phase may extend in near term market. We currently is looking for the upside resistance at 11570-11590. While, immediate downside support remained at 10827-10742.