FKLI >>> Technical Outlook 23 May 2013

Technicals
Expect futures prices to succumb to further profit taking today ahead of the extended weekend. BSKL will be closed for Wesak Day on Friday.

Futures prices cascaded 0.64 percent, closing at 1776. Trading activities formed a black candle with long upper shadow, implying that
gains posted in the earlier trading session were not sustained. This formed a bearish harami which indicates further downward potential.

The downward price movements managed to bring RSI indicators down from a previously overbought situation.

Additionally, MACD indicators is currently neutral, a signal that bullish momentum is waning. As such, range for the day can be eyed at 1760 and 1785 respectively.

Intraday technical support & resistance for 23rd May 2013:

 1st support 1,770; 2nd support 1,765-60

 1st resistance 1,785, 2nd resistance 1,796-1800

Strategy

Trade may short with a stop on or above 1785.

GOOD LUCK 

FKLI 22 May 2013 >>> Prices may breakout of Fibonacci Retracement Range

Technicals
Futures prices soared 0.70 percent to close at 1787.50. Trading activities was depicted through the formation of a long white candle with a shaven bottom as prices traded continuously
above opening level. Prices continued its reign of the territory above its 20, 50, and 100 moving averages. Hence, expect a further surge in prices today if it is able to breach its immediate
resistance at 1796.5. However, do expect strong resistance at the 1800 level as selling pressure would start to kick in. As such, support and resistance can be eyed at 1775 and 1796.5 respectively.

Strategy
Traders may attempt a short above 1790 with a cutloss @1800 - 1803

GOOD LUCK 

FBM KLCI closes higher on late buying, Genting Bhd, IOI Corp

Late buying of index-linked stocks enabled the FBM KLCI to close today in positive territory, underpinned by fund buying of Genting Bhd and IOI Corp.

At the close, the FBM KLCI was up 2.44 points or 0.14% to 1,769.16. Turnover was 2.11 billion shares valued at RM2.07bil. There were 588 gainers, 271 losers and 263 counters unchanged.

The KLCI fell into the red in the later part of the afternoon in the absence of strong corporate newsflow and leads from regional markets. However, the broader market was firmer, with buying of smaller capitalised and lower liners.

Genting Bhd rose 18 sen to RM10.76, pushing up the KLCI by 1.43 points. Petronas Dagangan rose 32 sen to RM25.12, Petronas Gas 14 sen to RM22.04 and UEM Land four sen to RM3.17.

Among the banks, Hong Leong Bank rose 26 sen to RM14.30, HLFG 16 sen to RM15.56, AMMB nine sen to RM7.24 and RHB Cap two sen to RM8.81. Public Bank fell 10 sen to RM16.60 and CIMB shed one sen to RM8.33.

The ringgit continued to lose ground against the US dollar, slipping to 3.0220 from the previous close of 3.0139.

FKLI down 0.79% to 1765 on profit taking

FKLI Daily technical analysis:
 The FKLI spot month contract ended sharply lower on Thursday due to Malaysia GDP released worse than expected which had dampened the market sentiment. At the close, the FKLI price dropped 14 pts or -0.79% to 1,765.

 Based on the daily chart, another long negative candle has been formed on Thursday where it indicated sellers remained aggressive throughout the day. During the trading session, the FKLI price went down to as low as 1,762.5 where it had tested the range support level. On the other hand, we should monitor closely whether the price is able to stay above the level of 1,760. If the price breaks and closes below this level, it may drop further.

 Referring to the MACD histogram, a rounding top is forming up. As always, intraday support and resistance levels will be eyed.
Technical indicators:

 MACD= Positive, ADX= Positive，

Intraday technical support & resistance for 17th May 2013:
 1st support 1,760-55; 2nd support 1,750-40
 1st resistance 1,775-80, 2nd resistance 1,786-96

Exhausted FKLI Closed With Bearish Engulfer

FKLI bulls deserves a rest after GE13 & Cabinet formation

Recommendation : Sell Into Strength