14th May 2012, Monday (DJIA & FBMKLCI)

DJIA

Overall technical landscape for DJIA is challenging at the moment with the immediate important support level is seen at SMA 100 (12835). Failure for this level to be held will cause the DJIA to suffer free fall and a more reliable support level is only being seen at 12500 level. Tonight will be the crucial night for the DJIA and investors should take the above mentioned level as a reference.

For the week, the immediate support is seen at 12800 level, followed by 12500 level and immediate resistance is seen at 13000 level, followed by 13300 level.

FKLI

Immediate Target – Regaining its Posture above the SMA 20, 30 & 50!

As mentioned last week, provided the above mentioned level can be taken over convincingly, else, we should see the FKLI to trade within the band of 1565 to 1585 levels.

However, I will remain my view that long position is more preferred at the moment. Any weakness should serve as another opportunity for us to initiate long position with stop loss level being set around 1565 level as the probability for the index to trade above the 1600 level remains high.

For the week, the immediate support is seen at 1560 level, followed by 1545 level (strong and reliable level) and the immediate resistance is seen at 1586 level (SMA 20, SMA 30 & SMA 50), followed by 1600 level.

FCPO

Weakness…

As mentioned last week, if the Fibonacci level of 50% is not able to be held, more downside is expected and we may only see the strong and reliable support at 3200 level. As downside might be limited at the moment, we should wait for the chance to initiate long position, especially any level below 3200 (psychological level, Fibonacci level of 38.2% & a level that so close to SMA 200) with stop loss being set around 3175 level and first profit taking level being set around 3350 level.

For the week, the immediate support is seen at 3200 level, followed by 3150 level and immediate resistance is seen at 3361 level, followed by 3400 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.