Today, let us have a view on the overall market since the index is approaching its important support level. Will this be the starting of the bear market since the index has dropped below its important support level - SMA 200 level. In my view, the probability is lower as this is the level that never being taken out for the year. Besides, this level is a reliable support level as the SMA 200, Fibonacci level of 78.6% and psychological level are located around the 1600 level.
As the index staged a strong rebound yesterday, we should see this level remains as a reliable support level, at least for now. So long as the index can leap above the SMA 200 (1608), the downside risk will definitely reduce. However, in trading environment, always remember to have proper trading plan (ie: your stop loss level) in place since nothing is impossible in investment environment.
The immediate support is seen at 1600 level, followed by 1590 and the immediate resistance is seen at 1620, followed by 1630 level.
FKLI
1600 – Remains as Reliable Support Level?
It is too early at this stage to speculate whether this level can be supported or not, investors should trade with proper stop loss level. I am still in the view that this is a level that is worthwhile to take a risk and initiate long position, however, stop loss level definitely need to be in placed as well as no one will able to predict the market and we should trade according to the market.
The immediate support is seen at 1600 level, followed by 1590 level and the immediate resistance is seen at 1620 level, followed by 1630 level.
FCPO
Range Trading – 2250 to 2450 Levels!
The FCPO is expected to re-challenge its SMA 30 level, if SMA 30 is not able to be taken over convincingly, we should see the FCPO to trade within the band of 2250 to 2450. Provided the SMA 30 (2460) is being taken over convincingly, only we will see the FCPO to trade into the next range of 2450 to 2650 level.
Above mentioned bands can be taken as a good reference level for any position initiation with tight stop loss being placed around the mentioned level (initiate short position when the FCPO approaching 2450 level; accumulate long position when the FCPO approaching 2250 level).
The immediate support is seen at 2350 level, followed by 2300 level and the immediate resistance is seen at 2400 level, followed by 2450 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.
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