FBM KLCI >>> Left with no options other than a breakout

A picture paints a thousand words

The Chart speaks for itself

A breakout (north or south) could dictate the immediate direction for next week 

GOOD LUCK

Technical Analysis : FBM KLCI persist in consolidation mode

FBM KLCI Technical Analysis : The Fibonacci Retracement Support & Resistance

The stubbornly overbought technical momentum and also weakening trend indicators for the benchmark FBM KLCI are suggesting the current uptrend is waning. Hence, we expect further profit-taking consolidation this week until overbought momentum has been neutralized.

Moreover, weak buying momentum last week, as most investors were sidelined ahead of the nomination of candidates for the 13th general elections, suggests that the current subdued trading sentiment could persist up to election day.

As for the index, immediate support will be at the previous 1,699 record high of Jan 2013, matching the rising 10-day moving average and last Tuesday’s low of 1,688. Stronger retracement supports remain at 1,658, representing the 23.6% Fibonacci Retracement (FR) of the 1,526 low of May 2012 to the 1,699 record high of Jan 2013, and 1,633, the 38.2%FR matching the recent pivot low as strong downside buffer. 

Immediate resistance would be at the intra-day record high of 1,716, while a breakout would target the upper Bollinger band at 1,722, and then 1,740, 123.6% Fibonacci Projection (FP) level.

FCPO : Technical Analysis 17 Apr 2013

FCPO Daily Technical Analysis
 The FCPO active month contract ended off low on Tuesday due to electronic soybean oil prices traded sharply higher during the Asian trading session had supported the FCPO price. At the close, the FCPO price was flat at 2,301.

 Based on the daily chart, a small positive candle has been formed on Tuesday where it indicated that buying interest emerged at the intraday low level. During the trading session, the FCPO price had tested the intraday first support level but it did not break below that level. If the price is able to stay above this level in the coming days, there is a high possibility it may rise further.

 Referring to the MACD histogram, it 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 17/04/2013

 1st support 2,285; 2nd support 2,228-15

 1st resistance 2,340; 2nd resistance 2,380

Recommendations

Sell Into any Rebound High 

Bullish Reports Failed To Lift CPO Prices

FCPO Daily technical analysis:
 The FCPO active month contract ended lower on Wednesday due to stronger ringgit triggered selling in FCPO market. Market had ignored a bullish report released by MPOB, ITS and SGS. At the close, the FCPO price was down 25 pts or -1.04% to 2,370.

 Based on the daily chart, another long negative candle has been formed on Wednesday where it indicated that selling pressure weighed on the FCPO price. 

During the second trading session, the FCPO price rose to 2,416 after MPOB released a bullish report. However, the price was unable to break above the previous high level which had triggered technical selling again. Throughout the day, the price fell to as low as 2,370 where the gap left on Monday had covered.

 Referring to the MACD histogram, it 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 11/04/13

 1st support 2,340; 2nd support 2,300

 1st resistance 2,390; 2nd resistance 2,430

Recommendations

SELL INTO STRENGTH 

CPO Analysis For The Week Ahead 08 Apr 2013

CPO Technical Outlook

The benchmark June contract was consolidating this week and some trad­ers were cautious ahead of key fundamental reports and preferred to stay on the side-lines.

Last week’s palm oil price movement showed that the market was directionless while waiting for the fun­damental reports next week to gauge on the next price movement.

The benchmark level of RM2,360 will continue to be monitored to determine if the palm oil prices could be supported at this level.

Any price break below RM2,340 would attract more technical selling and long liquidation in the market.

Resistance would be pegged at RM2,430 while support will be set at RM2,340.

In addition, the increase worries on the bird flu outbreak in China also con­tributed the fall in soybean prices which could reduce the demand in feeds. 

Recommendations 

Sell Into Strength