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Temporary or Long Term Downside Trading? – FKLI 100623

Wednesday, June 23, 2010


7 points of premium towards the cash will send the FKLI to trade even lower for today after overnight triple digit losses suffered by the DJIA. Overnight tumbled in DJIA sending a weak signal ahead if the index still not manages to rebound above the MA 200 level for the coming few days.

Although at this moment, we will not change our neutral call to bearish call yet in view that our own technical still in place, however, we are still in the opinion that the FKLI will need to cover the gap of 1330 – 1320 before any further uptrend can be set in.

For mid to long term, we remain our bearish bias towards the market and for near term market, we will remain our neutral point of view until the uptrend channel being taken out. The support is seen at 1320 – 1315 levels and the resistance is seen at 1335 – 1340 levels.

US MARKET

Overnight US market skidded nearly 150 points after the home sales data unexpectedly dropped and closed at 10293 level. From technical point of view, the dropped is sending the DJIA to trade below the important support level of MA 200 level. Failure for the DJIA to regain above this level for the coming few days will indicate the bears will re-control the situation.
The next important support level will be the Bollinger middle band 10175 level and the resistance now will be at the MA 200 level.
[Reminder: US will release its New Home Sales (Survey 410K Vs Prior 504K) 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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