28th October 2011, Friday (UEM Land)

FBMKLCI

Uptrend Yet to be Confirmed

The index took over the 1453 level for the second day and with the overnight surged in DJIA, this level will able to be protected for today as well. The index will then trade in the next trading ranges (1453 – 1487 levels) and head towards 1500 level.

However, please remember that the uptrend yet to be confirmed at the moment as the index will need to create a higher low before a firm uptrend can be confirmed. Immediate support is seen at 1453 level and immediate resistance is seen at 1487 level.

UEM Land

Last Done: RM2.15

UEM Land taken over a few important resistances (SMA 50 & downtrend line) and this is giving us some opportunity to initiate position for this stock for short term trading. Stop loss level shall be set at a level slightly below RM2. Immediate support is seen at RM2, followed by recent low of RM1.55. Immediate resistance is seen at RM2.25 (Fibonacci level of 38.2%), followed by RM2.50 level.

FKLI

Long Term Trading – Higher Risk!

The FKLI is heading towards 1500 level without any weakness being detected at the moment and further uptrend is expected. However, investors are being advised not to hold too long a position in this high volatility market. At this moment, long position will be more preferred compare to short position and stop loss level can be placed around 1450 level.

Immediate support is seen at 1450 level and immediate resistance is seen at 1481 level, followed by 1500 level.

We shall have a look whether 1500 level can be a level for us to initiate short position in my next weekly market outlook.

FCPO

Strategy Remains the Same!

Nothing much to cover since the FCPO remains the same as per yesterday. I recap some of the important point covered yesterday. Investors may look into accumulating long position with the stop loss level being placed slightly below 2900 level. Immediate resistance is seen at 3000 level.

For risk averse investors, investors can choose to initiate fresh position once the FCPO taken over the 3000 level and place the stop loss level around 2850 level.