4th October 2011, Tuesday

FBMKLCI

Testing Again the Important Support Level – 1350!

In tandem with the dropped in overnight US market, our FBMKLCI may test the 1350 level again. Failure for this level to be supported will see the FBMKLCI to re-test its recent low – 1310 level in the near term. Market remains in weak territory with the high getting lower again (please refer to the chart below, circled in blue).

The immediate support is seen at 1350 level, followed by the recent low – 1310 level and the immediate resistance is seen at 1377 level.

Dow Jones

Approaching the Recent Low…

Let us look at Dow as this market is impacting the world indices. The Dow has been trading in a wide range (11731 – 10590 levels) for about two months and now approaching the recent low again – 10590 level. Failure for this level to be sustained may see the index heading towards the important support level -10000 level. Else, we shall see the Dow remains in the range above. Investors will need to monitor closely on the important support level – 10000 as this level if being taken out convincingly will give a very negative impact towards the near term market.

FKLI

Risk Averse Clients – Get Ready!

As per mentioned, if the FKLI unable to sustain above the 1350 level and taken over this level convincingly, risk averse clients can initiate short position with stop loss level being set around the 1377 level. For risk taker investors, you can just hold on to your short position with the stop loss level being placed slightly above the 1400 level.

Immediate support is seen at 1350 level, followed by recent low – 1295 level and the immediate resistance is seen at 1366 level.

FCPO

Cofirmed Downtrend + Wider Downtrend!

The FCPO convincingly fell into the next range that we are looking at – 2918 - 2670 levels (Fibonacci level of 38.2% to 23.6%, please refer to the chart below). This is attracting more downward trading for the FCPO and investors can just hold on to your short position with the stop loss level being remained around the 2900 level.

Immediate support is seen at 2800 level, followed by 2750 level and the immediate resistance is seen at 2900 level, followed by 2919 level.