FKLI continued its consolidation mode to close marginally 4 pts higher at 844.5 as there was lack of fiscal initiatives to pump primp the economy. The basis continues to fluctuate from 2.95 discount to 3.6 pts premium against cash. FKLI didn’t test its lowest of 831 on 2-Dec-08, RSI hooked up from oversold region and rebound is expected to occur today or tomorrow. We expect FKLI to test the 850 level first, it is recommended to let the rebound run and short once the rebound is exhausted as downside of FKLI is more than upside at current moment. Support is found at 837 and resistance is at 852.5.
Glance on Dow Jones:
Overnight Dow Jones retreated slightly by 7.01 points to 7216.97 points, the first retreat after its 4 consecutive days of gain. Recent rebound which is spurred by rally in financial companies was snuffed out by concern over rising credit-card defaults. Although banking companies such as Citigroup and Bank of America Corp. indicated that they were profitable in the beginning of year 2009, market is still filled with fear that rally isn’t for real and investors want to take profit, before new lows are created. For technical side, Dow Jones is still trapped inside downtrend channel, targeted resistance level is at 7600
Crude Palm OIl Futures 17/03/09
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