13th October 2011, Thursday (AirAsia)

FBMKLCI

The Starting or the End of the Uptrend?

A lot of the investors are asking the above question, however, I will still answer the same answer – please do not predict, just follow the market trend! The index is heading upward at this juncture and investors can ride on this uptrend but with small position. The reason is simple - world’s fundamental remains weak. A more detail coverage for the near term strategy will be covered in my next weekly market outlook.

Immediate support is seen at 1420 level and the immediate resistance is seen at 1450 – 1455 levels. We shall have a look at Dow tomorrow as the index is heading towards the upper band of the range trading.

Airasia

Last Done: RM3.25

The stock broke through the Bollinger middle band on Tuesday, this may give investors another choice for short term accumulation. Besides, most of the technical indicators are pointing towards positive trading for the near term.

Investors can initiate position with stop loss level being set at recent low – RM2.68. However, will advise risk averse investors to set the stop loss level slightly below RM3, rather than the recent low.

FKLI

Facing Tougher Resistance…

There are 2 reasons investors will be hard to get a clear picture at this juncture to make the trading decision:-

1)      There are 10 points of premium towards the cash based on yesterday’s closed.

2)      Immediate tough resistance for the FKLI will be around 1445 – 1450 levels.

So, what shall investors do? This is not a clear trend for us to hold for long term trading, investors should take on short term (not more than 3 days) position and to capture on the range trading -- Initiate long position if there are some gap towards the 1445 – 1450 levels and initiate short position if the index is reaching 1450 level. However, if initiated a short position, please remember to keep your stop loss tight, maybe around the 1458 level.

Immediate support is seen at 1420 level and immediate resistance is seen at 1445 – 1450 levels.

FCPO

Immediate Tough Resistance – 2900 Level!

We shall be seeing the FCPO to resume the range trading (2775 – 2900 levels), at least for the week. The FCPO should have the necessary support at the moment as the Bollinger upper and lower band are narrowing at this juncture. The consolidation phase will resume after recent sharp dropped with the immediate support is seen at 2800 level and the immediate resistance is seen at 2900 level.