Expected Pull Back… – FKLI 100622

We are expecting a pull back for our market as yesterday surged will be taken as overdone and overnight slight declined in the DJIA will also send the FKLI to trade lower for today. Besides, the 6 points premium gained yesterday by the FKLI may need to give back for today.

Yesterday gap opening will indicate the FKLI needs to tumble to close the gap before any further uptrend is expected. At current level, we are in the opinion that the market is not a clear market for investors to initiate a short position although we perceive the 1350 level is a strong resistance level for the cash market.

We will maintain our neutral view towards the near term market and maintain our bearish bias towards the mid to long term market. The support is seen at 1330 – 1325 levels and the resistance is seen at 1350 level.

US MARKET

The immediate tough resistance is seen at 10780 level, the highest level set on 14th May before the sharp dropped set in. Breaking through this level will only send a clear signal on the uptrend, failure for this level to be taken out will indicate the near term market may fall into further consolidation phase. The support is seen at 10340 level – MA 200, which is also a very important support level.
[Reminder: US will release its Existing Home Sales (Survey 6.12M Vs Prior 5.77M) 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.

Do Bears Need to Give Way? – FKLI 100519

Just a quick recap of what had happened last week, especially last Friday. The band for the cash that we had been tracking thus far (1303 – 1308) has been successfully being taken out on the eleventh-hour and the cash closed even 5 points higher after the pre-matching phase. This broke through will indicate the short-term bullishness of the market as per mentioned previously.

The next question that most of us will ask is "Whether this upside trading will continue for the time being?" In our opinion, the chances are higher although the cash has been unsuccessfully taken out the 1350 level after three attempts. However, with the help of the world market, at the moment, the FBMKLCI is expected to resume its slight uptrend with the immediate resistance only seen at 1330 level albeit at a slower pace after recent two consecutive weeks of upside trading.

For short term, we will temporary change our bearish call to neutral until the end of the month but we will maintain our bearish call towards the mid to long-term call on the market. We perceive this round of rebound as technical rebound and the chances for it to break through the 1350 level are slim. Investors can take a quick and temporary long position and look to take profit above the 1330 level. This will not be a good level to initiate short position in view of the current unstoppable uptrend.
For today, the support is seen at 1315 – 1310 levels and the resistance is seen at 1325 – 1328 levels.


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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.

Take a Rest! – FKLI 100618

Yesterday, last hour short covering pushed the futures to close 9 points premium to cash will more or less put some pressure to the FKLI for today. Our market is still not a clear uptrend with the cash remains confine in the band of 1303 – 1308 levels. Successfully breaking the 1308 level will indicate the cash will at least reach 1320 level. Failure for this level to be taken out convincingly will trigger selling pressure in the market.

In our opinion, the FKLI will gradually move towards the 1320 level till the end of the month before any major correction will set in. Historically, stepping into the third quarter will be a slow quarter and investors will take this opportunity to liquidate their position after the end of this month.
For today, not much to expect as well as it will still be a lackluster trading day with the support is seen at 1305 level and the resistance is seen at 1315 – 1318 levels.

US MARKET
Overnight US market closed marginally higher of 24 points mainly contributed by rally in technology shares. Overall technical landscape remains unchanged with the immediate support is seen at the MA 200 level – 10330 and the resistance is seen at MA 100 level – 10540.


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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.

Quite Session Expected! – FKLI 100617

Yesterday, the cash retreated almost 10 points from its day high, closed at the day low and just closed within the band that we are looking at thus far. Like what we mentioned yesterday, the chances for the cash to break through the tough band is high but not necessary. The inability to sustain above the band that we are looking at, indicating the uptrend building is not confirmed.

For today, since overnight DJIA unchanged, we are expecting our FKLI market will be havoring within a very tight trading band with slight downside bias. For today, the support is seen at 1305 – 1300 levels and the resistance is seen at 1312 – 1315 levels.

US MARKET
Overnight US market closed marginally higher of 4 points as greenback strengthen against the euro and the housing starts data showed declined result. The DJIA currently is only marginally above the important support level of MA 200 – 10325. The DJIA will need to hold on to this support level to allow the index to resume its uptrend. Failure for the DJIA to hold above this level will send the US market to resume its downside trading.
[Reminder: US will release its CPI (Survey –0.2% Vs Prior -0.1%), Initial Jobless Claim (Survey 450K Vs Prior 456K) and Leading Indicator (Survey 0.4% 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.

Cash to Break 1307 level? – FKLI 100616

Sudden slump down in the morning session triggered by stop till the low of 1269.5 point was proving that the illiquidity suffered in the market with the world cup taking the stage and in accordance with school holiday in Malaysia. A lot of the investors will start to ask whether our FKLI will retreat to that level again in the near future as this is normally happened previously. In our opinion, we will stick to our view -- if the FBMKLCI (cash) successfully taken out the 1303 – 1308 levels, short term traders should shift their trading strategy to temporary long.

Whether today the cash will successfully break through the above levels after overnight US market surged more than 200 points and even regained its posture above the MA 200 level? No one will know, we can just say, "chances are higher but not necessary". Risk averse investors should ready to cut if the above levels are being taken out convincingly.

For today, the support is seen at 1290 level and the resistance is seen at 1305 – 1310 levels.

US MARKET
Overnight DJIA just successfully broke through the MA 200, recovering from its correction phase. As long as the DJIA manages to sustain above this level tonight, the upwards trading is expected for the near term.
Yesterday, US market surged more than 200 points, +2.1% after the manufacturing gave the signal of the world economy recovering is expected to resume. The support is seen at 10320 level and the resistance is seen at 10500 level.
[Reminder:
1)      China, Hong Kong and Taiwan market will be closed for today in accordance with Dragon Boat and Tuen Ng Day celebration.
2)      US will release its PPI (Survey –0.5% Vs Prior -0.1%) and Housing Starts (Survey 648K Vs Prior 672K) 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.