5th June, Tuesday (FBMKLCI)

FBMKLCI

Reliable Support Level – SMA 200 (1510)!

With the weak development in Europe debts, more downside is expected with huge volatility. The immediate important support is at 1550, failure for this level to be supported will cause the FBMKLCI to have a higher probability to test the next important and reliable support level – SMA 200.

The immediate support is seen at 1550 level, followed by 1540 level and the immediate resistance is seen at 1565 level, followed by 1575 level.

I will cover Top Glove’s stock tomorrow.

FKLI

Downside Risk Increasing…

The index is expected to hover within the range that we are eyeing (1550 to 1580 levels). Nothing much that investors can do except to capture on the range trading (short when the FKLI approaches 1585 level and long when the FKLI approaches 1550 level). However, investors will need to place a tight stop loss point when initiated long position as the downside risk is increasing.

Provided the 1585 level can be taken over convincingly, then, we will expect the FKLI to re-challenge the historical high, else, not much to be expected as the FKLI will remain trading in the range that we are looking at.

The immediate support is seen at 1550 level, followed by 1540 level and the immediate resistance is seen at 1570 level, followed by 1580 level.

FCPO

Bears Won!

The bears basically have won the battle and more downside is expected moving forward with the immediate support is seen at 2915 level. Failure for this level to be supported will see the FCPO to re-test the recent low – 2750 level.

What investors can do? As the downside seems limited at the moment, short position for mid to long term trading might not be that encouraging. However, short position for short term trading (less than a week) can be considered with stop loss level being set around 3050 level.

The immediate support is seen at 2915 level, followed by 2850 level and immediate resistance is seen at 3040 level, followed by 3100 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.