15th April, Monday (DJIA)

DJIA

Trying to Challenge Tough Resistance – 15000 Level!

The index will try to challenge the immediate tough resistance – 15000 level! However, the index might need to take a breather before it can resume its upward trading. I am still in the view that the current level is at its peak and retracement is expected to set in.

For the week, the immediate support is seen at 14600 level, followed by 14500 level and the immediate resistance is seen at 14900 level, followed by 15000 level.

FKLI

Bias to Short Position…

No matter what, investors should try to avoid holding long position for long term trading (any time frame more than a week) as the political risk remains high and please bear in mind that we do not take the risk when your probability of winning is less than 60% (only 33% of winning probability - if BN is to win more than 2/3). However, intraday long position might be something worthwhile to take but always remember to keep your stop loss tight.

For long term investors (expected to hold more than a week), investors should look for opportunity to initiate short position (higher winning probability) instead of searching for opportunity to initiate long position (especially any level above 1700). For risk averse investors, you might want to initiate short position when the polling day drawing nearer or any level above 1700 level.

For the week, the immediate support is seen at 1680 level, followed by 1650 and the immediate resistance is seen at 1700, followed by 1720 level.

FCPO

Hovering around the Downtrend Line…

The FCPO remains hovering around the downtrend line, nothing much that investor can do provided the downtrend line can be taken over convincingly, more uptrend is expected. Else, the long term downward trading is expected to resume. 

Trading range remains within the 2325 to 2500 levels. As mentioned, if the 2325 level not able to be supported, the FCPO is expected to have another 100 points of free fall.

The immediate important support is seen at 2325 level, followed by 2300 and the immediate resistance is seen at 2400 level, followed by 2500 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.