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Tuesday, September 4, 2012

FKLI Technical Analysis 04 Sept 2012

FKLI Daily Technical Analysis 04 Sept 2012

The FKLI spot month contract closed on a positive note while cash index also closed solidly higher on Monday after weak Chinese factory index released, which had spurred expectations for a fresh round of monetary easing by China. At the close, the FKLI price was up 1 pts or 0.06% to 1,646.
Based on the daily chart, the price was still trading in a narrow range and during the trading session, it had tested the intraday first resistance level but was unable to stay above that level. The price broke and closed below the support turned resistance line but it is still staying above the level of 1,640. We should monitor closely whether the price is able to climb above support turned resistance line in the coming days. On the other hand, the formation of Monday candle is not giving a clear signal.  Hence, further confirmation is still needed to confirm the signal. However, this condition will be negated if it breaks and closes below the level of 1,640.
Referring to the MACD indicator, MACD line and signal line are slowly inching lower but the trend is still positive. Meanwhile, the MACD Histogram is building up in the negative zone. As always, intraday support and resistance levels will be eyed.

Technical indicators:
MACD = Negative
ADX = Negative

Intraday technical support & resistance for 04th Sept 2012:

1st support 1644-40; 2nd support 1633
1st resistance 1652-55; 2nd resistance 1657.5

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