FKLI Keeps Traders On the Edge; Indicators confirm nothing, just yet.

Neither bulls nor bears can claim superiority
The selling pressure that is more than a week now is not over, though price is still within a longer term uptrend and possibly made a bottom last week. Again, the bias is likely up and an intermediate low of 1510 was made last week as:
1) Sign of strength as April high of 1562 retraced more than 62% of Jan-Mar decline;
2) Probably bottom last week should the 28 day cycle returns, with Mar 15 as the prior low. Up-cycle returning as price spent 17 days up, more than half of cycle;
3) False breakout below 1510 last Monday;
4) Global equity rebound last week, with both Jakarta and Korea recording all time highs; and
5) Continued strength in Ringgit (@13 years high versus USD)

If that is so, the first sign of strength is price closing above important level of 1524, which has to be followed by close above 1535, then closing January gap of 1564 and closing above 1580. Also, a rising US treasury yield would add further confirmation.

Nonetheless, the negative is not all erased. Daily RSI divergence suggests upward momentum is weak and not to mention the persistent futures discount to cash in the past month, pointing to downcast sentiment. If that is so price has to trade below 1520 and the closing below 1510. First target will be 1485. But again, downtrend is only confirmed on sustained close below 1470.

> Weak candles after touching the moving average. But need to close below last week's low to confirm weakness.

> Trend is weak, price is below21 day moving average but average lopes up.

> Price is still within 5 month trading range of 1470 - 1580. The level around 1525 is also important.

> RSI is falling with price. Looking for bottom?

> Stochastic in buying mode. Bottom made last week?

> If 28 day cycle still on-going, a prior bottom was 15 Mar, and the lastest last week? Positive cycle patter? New cycle just started?

> Intermediate support at Nov low of 1470

> Doji after long black candle, market undecided. Trend may reverse or continue. Price likely trend on direction of break of weekly range.

> Price is again below the moving average. The average stays flat, suggesting sideway market.

> Important bottom is still May 10 low of around 1280. RSI is now lower than Feb10, and given the rebound, Feb/Mar 11 1470 is now an important low.

> Resistance is now all time high of 1580.

> Longer term support likely be 1470, around 1445 and 1350. 1240
should be an intermediate support.

RECOMMENDATIONS

Based on the analysis in the 2 given charts. The following trade may be initiated >>>

Long Recommendation >>> Entry: Above 1524.

Stop: Below 1520.

Short Recommendation >>> Entry: Break of 1520 or near 1535.

Stop: Above 1524 or above 1530. A good short has to close below 1510.

Moving AverageTrade Recommendation (Position Traders)

Stay short>>> Trailing Stop: 21 day moving average level of 1534.

HAPPY TRADING