3rd October, Wednesday (SapuraKencana Petroleum)

SK Petroleum

Last Done: RM2.42

The stock staged a strong rebound at Fibonacci level of 61.8% (RM2.35) and with the stock staying above the SMA 20 coupled with the widening in the upper and lower Bollinger band, we should expect further upside for the stock.

Any new position initiation should couple with stop loss level being set around RM2.25 level and first profit taking level around RM2.60.

The immediate support is seen at RM2.25 level, followed by RM2.00 level and the immediate resistance is seen at RM2.50, followed by RM2.60 level.

FKLI

Taking Over 1655 Level?

Although the chances for the FKLI to take over the 1655 is high, however, the FKLI is expected to resume its range trading of 1620 to 1655 levels, at least for the week. Nothing much that investor can do except to capture on the range trading (initiate long position when the FKLI approaches 1620 level and initiate short position when the FKLI approaches 1655 level with stop loss level being set around 6 points away). We will only revisit our strategy provided the above mentioned level being taken out convincingly.

The immediate support is seen at 1640 level, followed by 1630 level and the immediate resistance is seen at 1660 level, followed by 1670 level.

FCPO

Downward Trading Remains…

The sharp dropped in FCPO is expected to resume as there is yet to have any signal that the FCPO will stage a rebound and the next more reliable support level is being seen at RM2000/MT only. However, if the FCPO can close above the important support level that we are looking at – 2270 level, we should see the 2270 level become the important support level.

Please bear in mind that both fundamental and technical shown that it is about the time for the FCPO to stage a rebound, however, any long position should still couple with tight stop loss level as the market is full of emotional traders.

The immediate support is seen at 2200 level, followed by 2100 level and the immediate resistance is seen at 2470, followed by 2550 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.