6th October 2011, Thursday

Announcement:

1)      FCPO’s margin has been reduced to RM6000/ contract from RM7000/ contract previously.

2)      Starting next week, I will setup a table to explain certain most used keywords for your detail understanding.

3)      Next week onwards, all the weekly market outlook (summary version), I will translate into Chinese as well.

FBMKLCI

Continue to Take Profit…

I reiterate, those who have intention to keep your stock for short to mid-term trading, you must start to search for your profit taking level and slowly sell those stocks on any technical rebound. Tomorrow is Budget Day, the index may not able to reach the recent high of 1404 level at the end of today. However, will this be the end of the technical rebound? I will cover this in detail during my next week’s market outlook. No matter what, so long as 1400 level is not being taken over convincingly, the market remains in a weak position.

Immediate resistance is seen at 1378 level, followed by 1390 level. Immediate support is seen at 1360 level, followed by 1350 level.

Genting

Last Done: RM9.00

Let us look at this stock as a lot of the investors are asking about this stock. Without hesitation, this stock remains downtrend with the current immediate tough resistance is seen at RM9.15 level. Why this level is tough?

1)      It is the Fibonacci level of 23.6%.

2)      So close to the psychological level of RM9.

What should investors do? Either you can choose to take profit at current level or set your stop loss level at recent low – RM8.35 level. If the recent low is being taken over, we will see further sharp retracement for the stock. Immediate support is seen at RM8.80, followed by the recent low – RM8.35 level.

FKLI

“Last Day”!

Those who have “Long” position, please take your profit the latest by the end of today or when the FKLI trades above 1385 level, whichever comes earlier. As mentioned yesterday, the initiation of the long position is for short term trading (to ride on the budget rally), thus, you should close your position ahead of the event – budget day.

Immediate resistance is seen at 1380 level, followed by 1390 level and the immediate support is seen at 1366 level.

FCPO

Heading Towards Our Target!

Another 100 points, the FCPO has reached the support level that we are looking at (Fibonacci level of 23.6%). So, should investors start to take profit? Investors can start to scale down and take profit, especially any level below 2700. However, investors can hold on to a small position to ride on the downtrend. Immediate support is seen at 2750 level, followed by 2700 level and the immediate resistance is seen at 2800 level, followed by 2850 level.