4th June, Monday (DJIA & FBMKLCI)

DJIA

Bears taking Charge?

The DJIA suffered huge losses last Friday and closed below the important level that we are looking at – SMA 200 (12255). Will this be the indication that the bears will dominate? It is still at its early stage for us to gauge and get the confirmation, however, the downside risk is increasing and investors will need to take extra cautious. This may be the start of the free fall and the next reliable support level can only be seen at 11200 level.

For the week, the immediate support is seen at 12000, followed by 11500 and the immediate resistance is seen at 12255, followed by 12800 level (a tough resistance level).

FKLI

Immediate Support – 1550 Level!

More volatility is expected for this week as the world market remains fragile over the Europe debt crisis. At the moment, the index is expected to hover within the range that we are eyeing (1550 to 1580 levels). Nothing much that investors can do except to capture on the range trading (short when the FKLI approaches 1585 level and long when the FKLI approaches 1550 level).

Provided the 1585 level can be taken over convincingly, then, we will expect the FKLI to re-challenge the historical high, else, not much to be expected as the FKLI will remain trading in the range that we are looking at (1550 to 1585 levels).

For the week, the immediate support is seen at 1575 level, followed by 1550 level and the immediate resistance is seen at 1586 level, followed by 1590 level.

FCPO

Bears Won the Fight?

As mentioned, after taken into consideration of the volatility, any level more than 100 points below the SMA 200 (3155) should be considered as a confirmation of the bearishness for the FCPO. So long as 3000 level is not able to be held, free fall will set in and the next reliable support level can only be seen at 2750 level. We should patiently wait for another day for confirmation. Any initiation of short position should set your stop loss level around 3060 level.

For the week, the immediate support is seen at 3000 level, followed by 2850 level and immediate resistance is seen at 3040 level, followed by 3100 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.