Ahead of the weekend, certain important points that we hope to mention today to wrap up the week and also to prepare investors for next coming weeks. As per mentioned in yesterday report, if both the FKLI and Cash did not recoup the losses suffered the day before, we are ready to revise the call from cautious to bearish.
Wednesday broke through already shown the weakness that the market is going to suffer going forward, however, as mentioned in our report yesterday, this will give more opportunity for us as the market started to trade with a direction – DOWNWARD! Please re-read our yesterday report on the reasons why we are strongly in the view that this may be the beginning of the major correction.
Overall technical looks weak with:-
1) Today, the MA 100 level (1303) will be taken out convincingly for both the cash and the FKLI.
1) Today, the MA 100 level (1303) will be taken out convincingly for both the cash and the FKLI.
2) The psychological support level of 1300 will also being taken out.
3) The continuous widening in the Bollinger upper and lower band with the index is trading below the middle band.
For the near to mid term trading, the only strategy that investors should look at is to initiate Short position on any rebound. We are in the view that the indices will even retrace towards the MA 200 level which indicating the confirmed bearish phase. The support for today is seen at 1285 – 1280 levels.
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