Firmer Week! – FKLI 100628

For this week, as long as the cash can break through the uptrend line, the downward pressure is expected to set in. The immediate important support level shall be seen at 1320 level, failure for this level to be held coupled with the uptrend line being taken out convincingly, the correction will confirm its appearance. In contrast, as long as the 1320 level manages to sustain, the index has higher chances to reach the 1350 level for the last round, at least until the end of this month.

Not much to expect for this week as well with the market expected to trade slightly higher with thin volume. Although the overall technical landscape looks weak and face with higher downside risk, we are in the view that the window dressing will set in for these few days and the index will only start to experience major correction end of the week or beginning of next week. The support for the week is seen at 1320 – 1310 levels and the resistance is seen at 1338 – 1345 levels.

For today, sideway trading with slight upside bias is expected with the immediate support is seen at the 1320 level. Intraday investors can still accumulate a small long position if the FKLI trades near to the 1320 level with stop loss between 5 – 7 points from the 1320 level. We remain our view that the current trading level will not be a level to initiate short position yet.


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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.