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Thursday, August 23, 2012

FKLI Bears Threaten The Alternative Supports

FKLI Daily technical analysis:
The FKLI spot month contract closed slightly higher which was in tandem with the gain in FBMKLCI despite regional markets weakened did not affect much on local market sentiment. At the close, the FKLI price was up 3.5 pts or 0.21% to 1,649.
From the daily chart, a long positive candle formed with long upper wick where it indicated that price had been pressured when it hit the intraday highest level. As we can see in the chart, price had created a new high which is 1,655, but it was unable to stay above that level. During the trading session, price opened lower but later it managed to bounce up from the intraday lowest level and closed above the uptrend support line. As usual, the uptrend support line will still be monitored and if the price is able to rebound from that level, it may challenge the resistance line again. However, if the price breaks and closes below the uptrend support line, it may fall further.
Referring to the MACD Histogram, it is building up in the negative zone while the MACD indicator do not provide a clear signal as the lines are moving flat. However, we still need to monitor closely the change in MACD line in the coming days. As always, intraday support and resistance levels will be eyed.
Technical indicators:

MACD= Neutral
ADX= Positive
Intraday technical support & resistance for 23rd Aug 2012:

1st support 1644-40
2nd support 1633
1st resistance 1656
2nd resistance 1662

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