As mentioned, we will need to closely monitor the development in DJIA as the Dow approaching those important support levels that we are looking at. Overall technical landscape remains weak at the moment with the reliable and strong support level is being seen at 12500 level (SMA 100 & Fibonacci level of 78.6%) only.
If the above level not able to be supported, more major downside is expected to set in and investors will need to expect the same situation will happen to our FBMKLCI as well. Tonight will be the crucial moment for our justification.
FKLI
Important Support Level – 1583!
The important support level is now at 1583 level, failure for this level to be supported may cause the index to suffer some minor retracement. However, we are in the view that the probability for the index to move above the 1600 is higher and investors should remain taking long position on any weakness, especially any level below 1585 level.
The immediate support is seen at 1582 level (SMA 30), followed by 1570 level (SMA 50) and the immediate resistance is seen at 1600 level, followed by 1610 level.
Waiting for Initiating Short Position…
Short position is more attractive at the moment, especially if the FCPO reach/ trade near to 3700 level. We shall wait patiently for our short position initiation with stop loss level being set around 3710 level. Else, the FCPO will hover around the Fibonacci level of 61.8% and 78.6%.
Immediate support is seen at 3550 level, followed by 3500 level and immediate resistance is seen at 3650 level, followed by 3700 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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