Bears Attacking! – FKLI 100630

Broke through the 1320 level will send the index to trade all the way down to 1305 – 1300 levels as per mentioned previously. With the overnight tumbled in the Dow, will the cash resume its drop today? In our view, as long as the 1320 level not manage to be regained immediately, the chances for the cash to face with free fall till the 1300 level is very high as the 1320 level is the important psychological support level. With the current level, the index is facing with high downside risk as the Bollinger middle band and the MA 50 & MA 100 levels maybe successfully taken out by the bears.

Next, will this round of drop be a major correction or minor correction? We are in the view that if the 1300 level being taken out convincingly, then the correction will be major as the index will have higher chances to drop below the 1250 level.
Risk taker investors can accumulate short position on strength for mid to long term trading. The support for the day is seen at 1310 – 1305 levels and the resistance is seen at 1325 level.

US MARKET

268 points of sharp dropped suffered by the Dow after the consumer confidence slump and the concern over the growth in China. With the nearly 300 points dropped, the bears are successfully taken over bulls' position and further slide in the index is expected. Technical outlook remained negative with the index trading way below the MA 200 level. The support is seen at 9800 level and the resistance is seen at 10000 level.
[Reminder: US will release Employment Change (Survey 60K Vs Prior 55K) 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.

Resilient… – FKLI 100629

Overall market remained resilient with downside will be well supported towards the end of second quarter, however, market will continue its thin volume trading. For today, 7 points of premium towards the cash will keep the FKLI to havor around this level with immediate resistance is seen at 1335 – 1338 levels and the support is seen at 1328 – 1325 levels.

Overall technical landscape still in positive territory, albeit at the same time also facing with higher downside risk. Thus, investors can remain holding the long position but take opportunity for these two days to take profit and ready to sell into strength after the end of the month.

US MARKET
Another marginal weak market with the index closed lower of 5 points as crude oil prices and metal prices traded lower. Form technical perspective, the general outlook never change – bearish, with the index trading below the MA 200 and the Bollinger middle band. The immediate resistance is seen at 10195 level and the support is seen at 10080 level.
[Reminder: US will release Consumer Confidence (Survey 62.5 Vs Prior 63.3) 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.

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.

Fight between Bulls and Bears! – FKLI 100624

5 points higher after the pre-matching phase for the cash, pushing the FBMKLCI to close in positive territory on late bargain hunting and exclude our market from following the black closing in other regional and Europe markets. As per mentioned, at current level, the uptrend will remain intact albeit at a slower pace with the immediate tough resistance at the previous high of 1352 (futures) and 1350 (cash).

At this level, we will still remain our neutral view towards the market and will closely monitor the uptrend channel that build recently after the major correction. We will only revise our neutral call to bullish call for the cash if the previous high of 1350 is being taken out convincingly or from neutral to bearish call if the 1303 – 1300 levels being taken out convincingly.

The cash and futures may havor around the 1320 – 1345 levels for the coming week until the end of the second quarter. We are expecting some window dressing as well towards the end of second quarter. Thus, this is not a level that we will encourage investor to start accumulate selling position. Those who prefer holding long position can do so if the market trading near to the 1320 level but remembers to keep stop loss near to the 1315 level. Support for the day is seen at 1325 levels and the resistance is seen at 1335 – 1340 levels.

US MARKET

Overnight US market closed unchanged with the index being added 4 points only as the purchases of US new home sales fell. The index remains below the MA 200 level (10350) and this level need to be taken out as soon as possible to allow the uptrend in the US market to resume. As long as the index stuck below the MA 200 level, we will remain our bearish bias towards the market. The market is expected slow for tonight ahead of the GDP due to be announced tomorrow night. The support is seen at 10200 level and the resistance level will be at the MA 200 level.
[Reminder: US will release its Initial Jobless Claim (Survey 463K Vs Prior472K) 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.

Temporary or Long Term Downside Trading? – FKLI 100623

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.