FKLI >>> Bears To Check Bullish Upside, Sideway Trading Envisaged.

FKLI Daily Technical Analysis:

The FKLI spot month contract closed lower on Friday as regional markets traded lower coupled with market took their cues from the overnight bad performance on DJIA weighed on the market sentiment. At the close, the FKLI price was down 6 pts or -0.36% to 1,648.5.

From the daily chart, price retreated to as low as 1,645.5 in the late trading session and it had formed a negative candle on Friday. As we can see in the chart, price briefly broke below the uptrend support line but it was able to bounce back and closed slightly above the uptrend support line. Our review remains unchanged, where the price is able to stay above the uptrend line, it may bounce back. Otherwise it may fall further if it violates and closes below the uptrend support line.

Referring to the MACD lines and MACD Histogram, both indicators are not providing a clear signal at the moment. As always, intraday support and resistance levels will be eyed.

Technical indicators:

MACD= Neutral

ADX= Positive

Intraday technical support & resistance for 27th Aug 2012:

1st support 1644-40

2nd support 1633

1st resistance 1657.5

2nd resistance 1662

 

HAPPY TRENDING

FKLI Previews And Technicals 05 Apr 2012

Preview
Expect futures to trade lower today after a poor performance in the overnight US markets. Markets were spooked after the Fed’s declaration on monetary was deemed to hurt the global recovery, on top of this, a poorly received Spanish bond auction indicated the euro-zone debt crisis is still in murky territory.

Back home, FBMKLCI retreated below 1600 level to settle at 1599.27, down 0.46 percent. The index traded gradually lower throughout the day as investors priced in the affect of less monetary stimulus in the US. Banking counters CIMB and Maybank weighed heaviest on the index. Market sentiment remains in negative territory with futures discount to the underlying cash widening to circa 8 points.

Technicals
Futures settled at 1591.5, down 0.72 percent. Futures upwards momentum has been halted as investors concerns about the global economic recovery resurfaced after the Fed announced another round of quantitative easing was unlikely. Prices fell below major psychological level of 1600 in early trade, and quickly disintegrated to settle at its low of the day. MACD on the verge of a bearish crossover, whilst investors continue to stay sidelined as they weigh up the prospect of a world without monetary stimulus. 

As such, FKLI intraday support and resistance levels pegged at 1578 and 1596 respectively.

Intraday Trading Strategy

Aggressive trade may short with a stop on or above 1596.0

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

FKLI Daily Preview >>> February 29, 2012

Preview
Expect futures to trade range bound today with an upward bias after gains in overnight US markets. Investors cited the improved US consumer confidence and the sharp drop in oil prices as the main catalysts. Back home, FBMKLCI settled modestly lower at 1556.73. The index traded range bound after opening at its high.

However, investors took this opportunity to partake in profit taking activities as selling pressure was exerted throughout the day. Some late buying in the late afternoon acted to limit the losses for the day. Leading lags on the index were energy and telecommunication stocks. Market sentiment slightly improved as futures narrowed its discount to the underlying cash to almost parity.

Technicals
Futures settled marginally higher at 1556.0, up 0.1 percent. Futures traded range bound, which experienced selling pressure in the morning session, however this was countered by buying 
pressure throughout the afternoon session. Price action was depicted by the formation of a spinning top candle indicating  indecisiveness as investors await fresh leads. Volume was dominated by roll activities as investors switch their attention on to the March contract. 

As such, support and resistance levels pegged at 1550.0 and 1562.5 respectively.

Strategy : Aggressive trade may short with a stop at or above 1563.0.

GOODLUCK2ALL 

FKLI DAILY PREVIEW February 13, 2012

Preview
Expect futures to trade under pressure today as overnight Dow Jones and S&P recorded losses after the Greece bailout agreement suffered a setback, facing opposition by Greek lawmakers. 

In addition, investors were expecting a slowdown after recent strong equity rally. On the local front, the FBM KLCI ended at 1561.66, down 0.23 percent. Bargain buy was apparent after index opened lower, pushing index to day’s high of 1564.66. However, profit takers controlled the trending for the rest of the day. Energy, plantation and gaming stocks were the leading losers for the day, shown by TNB, IOI and Genting stocks. Market sentiment remained negative, as futures now trade at a discount of 8.66 points.

Technicals
Futures ended the day at 1553.0, down 0.35 percent. Futures trading was depicted in the formation of a short black candle, a reversal of fortune after a five-session streak of bullish outlook. As prices maintain its position above the psychological level of 1550, MACD is likely to continue its bullish momentum, crossing over its 9-day moving average. Technically speaking, investors may stay indecisive as contrasting outlook were derived from the indicators. As such, support and resistance can be pegged at 1533 and 1568 respectively.

Strategy

Aggressive trade may short with a stop on below 1568.

GOODLUCK