FKLI Preview Outlook 01 Aug 2013

FBM KLCI Futures Technicals

The FKLI spot month contract ended sharply lower on heavy selling pressure after Fitch, a global rating agency downgraded Malaysia’s sovereign credit rating. At the close, the FKLI Spot wiltered down 23 points to 1,774.5.
 

August futures prices cascaded 1.83 percent to close at 1766. Trading activities formed a long black candle, whereby selling activities intensified throughout the day. Prices were fragile as it violated major support levels to close below its 20 and 50 day moving averages.

 

Heavy sell-off triggered after the price broke below the two important support levels. As we can see in the chart, the trend is turning weak after it broke below the support line as drawn in the chart and this is also confirmed by the MACD indicator.

 

Moreover, MACD extended its selling signal for a third consecutive day, hinting more bearish potential. Thus, support and resistance for the day can be eyed at 1750 and 1775 respectively.

 

 

Intraday technical support & resistance for 1/8/2013

1st support 1,765; 2nd support 1,753-50

1st resistance 1,775-80, 2nd resistance 1,800

Strategy

Trade may short with a stop on or above 1775.

FCPO >>> Technically weak and in slow recovery mode

FCPO Daily technical analysis

The FCPO active month contract ended slightly higher due to slightly improved in palm oil export released on Monday which underpinned the FCPO prices. ITS and SGS showed Malaysia palm oil export down 14% and 13% respectively. At the close, the FCPO up 15 points or 0.67% to 2,272.

Based on the daily chart, a small positive candle with lower wick has been formed on Monday where it indicated that the price was supported at the intraday lowest level.

Currently, the FCPO price still lingers between the range of 2,215 and 2,300. We should monitor closely which way it will break in the near term. Strong support level we would peg at 2,215 then followed by the psychological level of 2,200.

Referring to the MACD indicator, both lines staying 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 23/07/2013

 1st support 2,215-00; 2nd support 2,170

 1st resistance 2,280; 2nd resistance 2,305

 

 

Strategy

Trade may attempt long with a stop on or below 2240.

FKLI 23/07/2013 >>> Previews and Technical Outlook

Preview

Expect futures to trend higher for the day, tracking gains in major bourses around the globe. In the US, the S&P 500 staged a third consecutive day of record high closing while dismal earnings from
McDonalds curbed gains in the Dow. Nevertheless, solid performance in the financial and health sectors managed to sustain gains. Back home, the FBM KLCI ended unchanged at 1797.68.

The local index ended flat after trading higher for most part of the day on last minute foreign selling activities. Meanwhile, volume across the board was thin as investors await the release of corporate earnings for the second-quarter prior to making investment decisions. The market was weighed down by British American Tobacco, Hong Leong Bank, and Kuala Lumpur Kepong Bhd. On the other hand, telecommunication stocks provided support for the market as Digi released favorable corporate earnings. Futures were still being traded at a premium of circa 4 points from its underlying cash market.

 

Technicals

Futures prices drifted 0.17 percent higher to settle at 1801.50. Trading activities was depicted through the formation of an inverted white hammer, which is considered a bearish signal during an uptrend. Moreover, 20 day moving average now lies above the 50 day moving average and prices stray further away from its 20, 50, and 100 day moving averages, which suggest a bullish trend. As such, support and resistance can be eyed at 1790 and 1810 respectively.

Technical indicators

MACD= Positive, ADX= Positive，

 

Intraday technical support & resistance for 23rd July 2013

1st support 1,790; 2nd support 1,785-80

1st resistance 1,806.5, 2nd resistance 1,810-15

Strategy

Trade may long with a stop on or below 1790.

FBM KLCI Daily Chart >>> Support and Resistance 17072013

GOODLUCK

ZLBT Random Stock Pick >>> AZRB (7078)

Technical Comments: Due to overbought technical momentum, any further rally on AZRB towards RM1.10 (14/2/12 peak) or higher should encourage selling prior to profit-taking correction ahead, while retracement supports are at RM1.03 (76.4%FR) and 96sen (61.8%FR).

AZRB (7078)

As of 16 July 2013, AZRB has been on a strong uptrend as suggested by the upward sloping 20-Day and 50-Day Moving Averages. In addition, the price just broke the resistance of 1.08 reinforcing the bullishness in the recent price movement. This breakout was accompanied by a higher than average traded volume which shows the enthusiasm of the traders to push the price higher and past this resistance hence giving a higher probability of a successful breakout. HAPPY TRENDING