FBMKLCI
1400 - Reliable Support?
So close to 1400 level! The FBMKLCI experienced another day of sharp dropped as worries on Europe’s debt still persist. Is 1400 a reliable support level? I will say that this support level is shaky at the moment with nearly 2 weeks to go before the budget announcement, thus, this 1400 level may not be a reliable support level.
Next question that investor will ask – will the index suffer another 10% of dropped (to 1300 level)? Still early to answer this question, however, the probability is high. The current immediate support is seen at 1400 level, followed by 1380 level. The immediate resistance is seen at 1423 level, followed by 1450 level.
FKLI
Go for Long?
The answer for the above question definitely is “NO”! The reason is simple. Overall technical landscape remains weak and the continuously few long black candles are indicating the weakness of the market will resume. So, what can investor do? Risk averse investors should stay sideline. Risk taker investors can initiate further short position if the index taken over the 1400 convincingly with the stop loss level being set around 1407 – 1412 levels. Previous stop loss level can be revised lower to 1423 level from 1450 level.
FCPO
Range Trading…
The FCPO fell back to the range that we have been looking thus far (2975 – 3070). No choice for us except to wait patiently and profit from the range trading – accumulate long position if the FCPO dropped below the 3000 level and initiate short position if the FCPO trades near to 3075 level. No point for me to cover in detail if the above range is not being taken out.
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