28th May 2012, Monday (DJIA & FBMKLCI)

Announcement:

Every Saturday (starting from 19^th May 2012) I will publish an

article on Futures. Those articles will provide a better understanding for all futures investors, especially new comers in the Futures trading environment.

DJIA

Range Trading – 12200 to 12500 Levels!

Provided the DJIA can leap above the 12500 level (Fibonacci level of 78.6%), else, we will see the DJIA to trade within the above mentioned range. Although downside risk remains high at the moment, I am in the view that 12000 should be able to be supported, at least for now.

For the week, the immediate support is seen at 12200 level, followed by 12000 level and the immediate resistance is seen at 12500 level, followed by 12700 level.

FBMKLCI & FKLI

Resistances – 1550, 1560 & 1570 Levels!

Along this uptrend, the resistances are waiting in tandem as well! The overall market remains weak if the 1580 level is not able to be taken out convincingly. The immediate target for the FKLI will be 1550 level, taking over 1550 level will have a higher probability that the FKLI will move toward 1580 level in the near future.

There are a lot of work to be done for FKLI – SMA 20 (1560); SMA 30& SMA 50 (1570), thus, short position will be preferred at the moment. Investors can take the above mentioned level as a reference level when initiate fresh position.

For the week, the immediate support is seen at 1507 level, followed by 1500 level and the immediate resistance is seen at 1550 level, followed by 1570 level.

FCPO

Bulls Won?

The answer for the above question yet to be confirmed as the FCPO will need to take over the SMA 200 before we can have a clear confirmation. There is still a close fight between the bulls and bears and nothing can be done except to trade within the range (long when the FCPO approaches the 3040 level and short when the FCPO approaches 3155 level) or stay on bay until a clear direction can be detected. However, please bear in mind that any position initiation at this moment should couple with tight stop loss point. Once a clear direction is being detected, we will only strategize our plan accordingly.

For the week, the immediate support is seen at 3000 level, followed by 2950 level and immediate resistance is seen at 3155 level, followed by 3230 level.

Disclaimer:

The information herein was obtained or derived from the source that I 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 constitute my judgment as of this date, not an invitation to buy and are subject to change without further notice.