Chances to Short… – FKLI 100609

Today, the FKLI will move very near to the 1300 level in tandem with overnight surged in DJIA and the expected announcement of the 10th Malaysia Plan tomorrow, this will give a good opportunity for investor to initiate short position in tandem with our short call initiated for the week. Monday itself did not give much an opportunity to investors to initiate their short position as the gap opening was discounted too large a level from what we are looking at – short near to the 1300 level.

We are firmly remained our downside bias call towards the market with the immediate support seen at MA 200 level – 1271. FKLI currently still maintain below the Bollinger middle band (please refer to the graph attached), indicating the bearishness of the market not yet come to an end.
For today, the support is seen at 1280 – 1276 levels and the resistance is seen at 1288, followed by 1293 level.

US MARKET

Overnight US stock market traded higher in accordance with the stronger commodities prices. Technically, the overall landscape did not change much as the index still trading way below the MA 200 level. We remain our bearish bias towards the market and reminded the investors that the World Cup will start this Friday, which is only another 2 days to go.
[Reminder: US will release its CPI (Survey 0.1% Vs Prior 0.1%) 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.