Sunday 7 April 2013

8th April, Monday (Overall Strategies)


Announcement: Please be informed that both the FKLI and FCPO margin has been reduced to RM4000 and RM6000 respectively.

FBMKLCI

Possible Election’s Outcome…

All eyes are on EC to make the announcement on the nomination and polling date. The announcement will provide the necessary information required by investors to make their investment arrangement before the polling day.
No matter what, investors should remain conservative in new position initiation provided you have proper planning in place, else, staying sidelines might be the best choice. 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). 
Any upward trading should give us additional opportunity to take profit for your remaining stocks in your portfolio.


FKLI

Higher Winning Probability – 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 based on the above analyzed outcome. 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. For risk averse investors, you might want to initiate short position after the polling date has been announced.
For the week, the immediate support is seen at 1650 level, followed by 1620 and the immediate resistance is seen at 1690, followed by 1700 level.


FCPO

Testing the Downtrend Line…

The FCPO is hovering around the downtrend line. 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.
For the week, 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.

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