Lackluster Week Ahead… – FKLI 100614

For this week, we are expecting the market to trade sideway in accordance with school holiday and the start of world cup. No major upside or downside movement is expected, at least for this week.

Technically, both the indices (futures and cash) will need to convincingly break through the 1303 level (MA 100) to return to positive trading, failure for this level to be taken out convincingly, the indices will be defended strongly by the bears.

We will temporary maintain our bearish bias towards the market and remain that investors who have shorted the futures should exercise stop loss if the cash manages to break through the 1303 level convincingly. Although this round of uptrend (if the 1303 is being taken out convincingly) will be mild, targeted the most will be reaching the 1320 level only, those who are risk averse should not take this kind of risk and should only re-initiate short position if the 1320 level achieved.

On the other hand, for US market, the DJIA needs to regain its posture above the MA 200 level to resume its uptrend, failure for this level to be taken out, the US market will remain in negative territory. In our opinion, the US market will have some mild technical rebound for this week with immediate resistance is seen at the MA 200 level – 10315.

[Reminder: Australia and China's market is closed for today in accordance with the celebration of Queen's Birthday and Dragon Boat Day.]


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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.