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Ahead of 10th Malaysia Plan – FKLI 100610

Thursday, June 10, 2010


Morning session will be a slow session ahead of our PM's release of 10th Malaysia Plan and the market may experience some minor sell off near the end of the first session. The overall technical landscape does not change at the moment and still bias towards downside with thin volume expected throughout these two weeks.

In our view, the cash may slowly climb higher and close the gap set on 21st of May before it resumes its downside trading (please refer to the graph). No matter what, the cash overall technical landscape is similar to futures and downside trading is expected as well.
We will remain our bearish bias towards the market and hold to our call of Selling into Strength. Any level near to the 1300 level should remain as a good selling level. The support for the day is seen at 1280 – 1275 levels and the resistance is seen at 1293 – 1295 levels.

US MARKET
Overnight US market dropped more than 40 points as concern on BP's dividend cut to pay for the oil spill at the Gulf of Mexico. The overall technical indicators remain weak with the index trading below the important MA 200 level. We are in the view that the index has been stuck in this low level for quite some time, reducing the hope for the index to rebound above the MA 200 level in the near term.
[Reminder: US will release its Initial Jobless Claim (Survey 450K Vs Prior 453K) later tonight.]


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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.

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