Technical Analysis >>> Soybean Oil May (ZLK12)

May soybean oil closed up 151-pts. at 55.10.

May soybean oil closed higher due to short covering on Friday due to spillover strength from soybeans, corn and wheat. The high-range close sets the stage for a steady to higher opening when Monday's night session begins trading. 

Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Multiple closes below last Thursday's low crossing at 53.66 would open the door for a test of March's low crossing at 52.88. 

If May renews this year's rally, the 62% retracement level of the 2011-decline crossing at 56.42 is the next upside target. 

First resistance is Monday's high crossing at 55.82. 

Second resistance is the 62% retracement level of the 2011-decline crossing at 56.42. 

First support is Thursday's low crossing at 53.59. 

Second support is March's low crossing at 52.88.

 GOODLUCK

FKLI Preview / Technical Outlook 29 Mar 2012

Preview
Expect futures to trade with a downward bias after a decline overnight in the US markets. Durable goods data came in weaker than expected which deflated investor’s confidence as well as a sharp fall in US crude prices, which may indicate a faltering economic recovery. Back home, FBMKLCI settled at 1583.75, down 0.27 percent. The index traded gradually lower throughout the day as a consequence of a lack of fresh leads as well as light profit taking activities. Banking giant CIMB was once again the leading lag on the index followed by IOI and Tenaga. Market sentiment remains positive although futures premium over the underlying cash was cut to circa 1.5 points

Technicals
Futures finished the day at 1585.5, off by 0.41 percent. Investors took the chance to book profits after prices climbed on Tuesday on the back of encouraging news from the Fed.

Trading was depicted by the formation of a short-bodied black candle as prices set back into consolidation mode whilst closing the gap-up made on Tuesday’s opening. MACD resumes its bearish divergence course. As such, support and resistance levels pegged at 1578 and 1588 respectively.

Overnight Leads
U.S. stocks declined on Wednesday as sliding oil and metals prices gave investors a reason to sell commodity-related shares.

Strategy

Aggressive trade may short with a stop on or above 1588.0

Technical Analysis : FBMKLCI 20/03/2012 富时大马综合指数 2012-03-27

FBM KLCI 27 Mar 2012
 With the exception of the Shanghai Composite Index, most of the Asian markets ended higher, as driven by the over-night strong gains of the US markets. As indicated by A, the KLCI rose 5.12 points or 0.32%, closing at 1588.10 points. The KLCI is still supported by the 14, 21, 31 EMA dynamic support, while the resistance stays at 1597.08 or 1600.

As indicated by B, total market volume increased 29.83%, but volume is still below the 40-day Volume Moving Average. This suggests that the market in a whole is still lightly participated. Technically, more volume is needed to sustain the bullish movement, especially when the KLCI is testing its historical high.

As indicated by C, the Stochastic stays above 70%, in its short-term bullish territory. This suggests that the KLCI short-term movement is still positive. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a short-term technical correction.

In conclusion, the uptrend of the KLCI remains intact, with positive technical outlook. However, if the KLCI should sustain this uptrend, it would have to break above its resistance, and equally important, more volume is needed.

富时大马综合指数  2012-03-27

在美国股市隔夜大举上扬的带动之下，亚太区域主要股市（除了上证综指以外）纷纷上涨。如图中箭头A所示，富时大马综合指数周二上扬5.12点或0.32%，以1588.10点挂收。综指继续维持在14、21、31天EMA的动态支持线以上，阻力还是保持在1597.08点及1600点的整数心理水平。

如图中箭头B所示，马股总成交量周二增加了29.83%，但是却还未能达到40天的成交量平均线（VMA）的水平。这表示马股整体上的交投还是处于淡静。以技术而言，若综指接下来要突破1597.08点的历史新高，那就必须要获得成交量明显增加的确认。

如图中箭头C所示，随机指标（Stochastic）继续处于70%水平以上的短期强势区域里。这表示综指短期走势至今还是偏强的，直到随机指标跌破70%水平为止，届时才是综指短期技术调整开始的讯号。

总的来说，综指涨势依然是完整的，同时技术展望也还是处于正面。不过，综指接下来能否延续涨势，关键还是在于综指能否突破1597.08点或1600点的历史新高，而相等重要的，就是马股整体上成交量的增加。 

祝你好运 

Middle Bollinger Rangebound Stocks x 30 4ur Perusal

*Note: To qualify in the list below, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. 

Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective daily charts to spot accumulation (volume growth) or breakout patterns.

 INTERPRETATION OF TECHNICAL INDICATORS:

Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day, and negative if it remains below this average.

14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk.

Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. buy when price touches the middle band and sell when price touches the upper band. 

Momentum traders will buy on price breaks above the upper band, and sell when price

breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets.

DISCLAIMER

The information contained herein was obtained from sources believed to be reliable. However, we do not guarantee the accuracy and completeness of the report. Opinions expressed herein are subject to change without notice. This report is for information purposes only and should not be construed as an invitation, offer or solicitation to purchase or sell any futures product referred to herein. The Author may from time to time has an interest or position in the futures products or stocks mentioned. There is a risk of loss in trading stocks,futures & derivatives like products.

Ichimoku Analysis on Dow Jones Industrial Weekly 26 Mar 2012

Let's  look at the weekly DOW charts using the Ichimoku Kinko Hyo indicator and it is clearly very bullish. Tenkan Sen (pink line) is above Kijun Sen (turquoise line), Chikou Span (green line) is above price and Kumo, and the future Kumo cloud is thickening and sloping up.

You will notice that the thick Kumo cloud supported prices during the last quarter of 2011, and ever since prices broke above the Kumo, there has been no u-turn. The bull run looks inclined to resume. 

However, there are two concerns for the bulls:

1. The Kumo cloud all the way into June 2012 is relatively thin, offering weak support.

2. Tenkan Sen is very far from Kijun Sen, the latter representing price equilibrium. Prices tend to retrace towards equilibrium, especially when the Kijun Sen is a flat horizontal line as pictured in the chart.

For the bulls, it is probably wiser to wait for a retracement to the Kijun Sen for a higher reward:risk bullish trade, while bears should wait for a breakdown below the Kumo cloud.  

If PM Najib is seeking a steady Malaysian economic outlook  timed for the imminent GE 13,  this  periodic DJIA chart will be a good call to dissolve Parlimen soon.