Malaysia Derivatives Exchange >>> The FKLI

A Marubozu candle for the Daily & An expanding BB for the Weekly

FKLI April >>> Bright Future Ahead

For the week ended on the 1st of April, 2011, the FBMKLCI Futures gained a total of 31 points with a weekly high of 1550.5 and a weekly low of 1503.5 points. Total market volume traded was 39907 contracts compared to 26224 contracts of the previous week
Overviews: After breaking above the Weekly Middle Bollinger Band (aka Mid BB), the FKLI also broke above the 1522 and 1536 weekly resistance. Weekly Support for the FKLI is now at 1522 and 1536 (both have turned from resist to support) while the resistance is at 1579.5 (all time high) and the 1600 psychological resistance. Meanwhile, the Middle Bollinger Band is still serving as the dynamic support to the Weekly FKLI.

Volume: Total market volume increased significantly last week, with volume breaking above the last 4 weekly average. Generally, the increased of volume suggests more inflow of fresh capital, and with stronger volume , it could help lift the futures market sentiment in general.

Bollinger Bands: The Bollinger Bands re-expanded last week, with the FKLI above the Bollinger Middle Band, this suggests that the weekly movement of the FKLI is turning from bearish >>> neutral / bullish bias, for the short term. The upside momentum of the FKLI is likely to sustain if the weekly Bollinger Bands should continue to expand. However, the FKLI in the Daily Chart is now above the 20-day Bollinger Upper Band, which suggests that the Daily FKLI is now over-heated, thus a pullback effect is expected to take place whilst in the Weekly Chart the Bollinger Bands are showing just a little wee-bit expansion. Weekly prices have yet to tag the Upper BB and sentiments remains positively optimistic more room for further upside in the Weekly Chart.

MACD: The MACD Weekly Histogram is still below the Zero Line but near completing it's Round Bottom Formation, and this rising of the MACD Histogram suggests that the weeklyFKLI is still picking up strength, and the improvement of the weekly FKLI is likely to sustain, until the MACD Weekly Histogram should complete a Rounding Top which in reality is still weeks away.
RSI: The Weekly RSI is now near the 60% smacked right in-between the Neutral 50 and Bullish 70%, If the Weekly RSI could rise above 70%, the mid term movement of the FKLI is expected to be positive looking ahead. Below 50%? Turn Short, what else?
Stochastic: The FKLI Weekly Stochastic which had been confined between the 20% >>> 30% for a few weeks now has been rising steadily last week and is now closing in on the 50% Neutral level and this suggests that the Weekly FKLI short term movement is indeed improving, slowly but surely. Nevertheless, with the Weekly Stochastic still below the 50% mark, the short term technicals indicate a weak but improving FKLI. The outlook for the week ahead has, somewhat, improve optimistically.

In a Nut Shell: The weekly technical outlook for the FKLI is now turning better, with indicators showing improving signals, together with some increment in volume overall.

However, after rebounding for the 3rd consecutive week, some LONG position profit taking activities cannot be ruled out, thus a pull back is likely an option rather than the norm.

If the FKLI should pullback and yet remain above the Middle Bollinger Band, it would have a good chance to rise again when the bulls retake the initiatives.

Sentiments have shifted from last month (March) Bearish/Neutral to April Neutral/Bullish.

SCORELINE (Over 4 Weeks)

Bulls 3 - 1 Bears

HAPPY TRADING