FKLI Spot >>> Commentary c/w Daily Chart

FKLI Daily technical analysis
The FKLI spot month contract ended with limited losses on Thursday while cash market managed to close in the positive territory. At the close, the FKLI price was dropped 2.5 pts or -0.15% to 1,673.

Based on the daily chart, an uncertain candle has been formed on Thursday where it indicated that market was indecisive. As we can see in the chart, a reversal candle formation had detected at the current highest level. Normally this kind of candle formation suggests that the FKLI price may reverse from the current highest level. However, further confirmation is needed to confirm the signal.

Referring to the MACD histogram is building up in the positive zone. As always, intraday support and resistance levels will be eyed.

Technical indicators

MACD= Negative, ADX= Negative，

Intraday technical support & resistance for 29th Mar 2013

1st support 1,660; 2nd support 1,650

1st resistance 1,678-82, 2nd resistance 1,690

GOOD LUCK 

Malaysia Derivatives Exchange >>> FBM KLCI Futures

FKLI Harami Turns It Around

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures contracts on Bursa Malaysia Derivatives closed higher yesterday, buoyed by the firmer cash market. Trading was however  still in cautious mode. Spot month contract April 2011 opened at 1525.5 before closing at 1530.0 within an 11 points high low range between 1524 & 1535. Open and closed range was even tighter at a mere 4.5 point. FKLI buyers remains edgy after a few negative sessions last week.

April 2011 gained 6.5 points to 1,530, May 2010 rose 8.5 points to 1,530, June 2011 advanced 8 points to 1,531 and September 2011 improved 6.5 points to 1,526.50.

Spot month continued it's rebound where it started from the Harami candle formed on the 15 April. A Harami candle is a well know U-turner.

Unconvincing Technicals
Technicals remain supportive but the MACD, RSI & Stoch have yet to find themselves in bullish terrority. The FKLI can best be describe as momentarily recovering. Indicators and oscillators are mostly in neutral numbers with the MACD histogram still in round bottom formation and the Stoch is confined to 30%+ well below neutral 50%.

Trading volume for all contract months dropped to 7,216 lots from 7,566 lots on Tuesday, while open interests fell to 22,103 contracts from the 22,298 contracts recorded previously. Spot month turnover also dipped to 6386 compared to 7042 yesterday.

Regional & global markets are expected to provide the impetus for FBMKLCI & FKLI to further consolidate their upswing with revitalised energy to overcome overhead resistances after some periodic consolidations. Any increase in trading volume would indicate much needed participations.

HAPPY TRADING & GOODLUCK2ALL