FBM KLCI Futures >>> The Week In Review

FKLI To Move Sideway; An Overdue Rebound ImminentFor the shorten week ended on the 6th of May, 2011, the FKLI declined a total of 21.5 points with a weekly high of 1533.0 and a weekly low of 1497.5 points. Total market volume traded was 32,147 contracts total of 4 trading days 1st May Labour Day being replaced by last Monday. The FKLI for the week ended 06 May was trading within a weekly Hi / Lo range of 35.5 points between  1533.0 & 1497.5. The FKLI Daily on Friday traded within a 16 points H/L Range and 8.5 points Open / Close Range.

Spot Daily Chart : As shown in the chart, the FKLI had fallen below the short term 4, 9, 18 EMA which illustrated the weakness of the FKLI short term movement. The FKLI also broke below the 1500 support, but rebound on Friday. and now testing  Fibonacci 1510 support. If the FKLI should break below the 1500 psychological support again, the next support will be at the 1493 and 1467.5 marks at the FR 38.2% & FR 23.6% respectively. With the FKLI below the 4, 9, 18 EMA EMA, the technical outlook for the FKLI is obviously negative.

Bollinger Bands : After sustaining for a period, the Bollinger Bands is now contracting with the FKLI below the Bollinger Middle Band. This suggests a negative signal for the FKLI, and the immediate technical outlook for the FKLI is also negative.

MACD : The histogram has began forming a Rounding Bottom, as the MACD histogram falls. The falling of the MACD histogram suggests that the FKLI is losing strength, and the weakness of this movement shall carry on until the MACD histogram should form a Rounding Top.  The MACD lines has also fallen below the Zero Line illustrating further weakness ahead for the daily FKLI.

 RSI: Until now, the daily RSI is still staying below 50% neutral (RSI at 37.7% to be precise) and this suggests that the mid term movement of the FKLI is somewhat bearish biased.

Stochastic: As shown in daily chart, despite the rebound on Friday, the Stochastic stayed at 32.3% way below neutral 50. The daily Stoch suggests that the short term movement of the FKLI will  remain bearish biased until the stochastic rises to the 50% or better still 70% margin.

In a Nut Shell: The FKLI lower-high formation is showing a weakness of it prices, however, the FKLI has threatened to formed a downtrend for the 1500 psychological level had been violated once last Friday. Nevertheless, it is normal for the FKLI to have a rebound after falling a few days, but if the FKLI should remain resisted by the 4, 9, 18 EMA, the short term technical outlook shall remain weak.

HAPPY INVESTING