ZLBT Chats

Monday, November 8, 2010

FKLI 1520 Intraday Target Achieveable >>> Positional Cautions Advised

FKLI momentum waning with both 15 mins & 3 months chart signalling the bears are ready to pounce
Is ZL bearish? Definitely not but still, the bulls deserves some much needed rest
Given the volatility in the index futures, it will not be surprising if this trend extends into this week. The market's attempt to push beyond the 1,520 line is likely to continue given the resurgence in market momentum. With the spot contract having experienced a recovery, some traders may still be holding on to their buy positions judging from the fact that the open interest volume did not decline substantially. The November contract is now at a 4-point premium to the cash index.

Tactically, we may see a more aggressive spot contract this week. Determined bulls are more committed in the market and are likely to forge ahead. Under this setting, the spot contract may be compelled to challenge the revised resistance line to 1,548.

Nevertheless, ZLBT still see some optimism until the G20 & APEC Meeting is over and done with later in the week. The FKLI will ride on the euphoria of the other asian markets especially the Hong Kong and Tokyo markets.

The Nikkei 225 rose 2.9% week-on-week with the HSI doing even better with an awesome weekly 7.7% gain. Profit takings are expected to surface on any additional upside from this juncture.

The FKLI is indeed top heavy with both the Stochastics & Commodity Channel Index flashing overbought. The daily MACD fast %K is dipping below the slow %D thereby emitting a minor sell signal.

ZL suggest a parameter change of 6 12 6 for MACD & 9 3 for fast Stoch with 15 minutes timeframe for magnified monitoring of intraday FKLI movements. Trust me >>> you wll see a lot more with recommended alternative parameters than with run-of-the-mills default settings of 12 26 9 & 14 3 for MACD & Stoch respectively.

ZL's FKLI open positions >>> 1515.5 average LONG
Intraday Target 1523 > 1525. Positional Target 1530.0

FKLI Rekomen
Be technically ready to take profits above 1520++ level
Monitor for a SELL above 1525 to exploit Overbought & Profit Taking activities. Keep a tight leash with cutloss 1530 +/- level.
FKLI is still bullish but some consolidation & pullbacks will be helpful to the tired bulls

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