14th February, Thursday (Overall Strategies)

Happy Chinese New Year! 

FBMKLCI

The index is expected to hover around the SMA 200 level for the remaining of the week. No matter what, as mentioned, investors should remain to take profit in this high political risk environment. 

Fundamental analysis will supersede technical analysis, thus, investors should not fully rely on the technical indicators to gauge the market direction.

The immediate support is at 1626 level (SMA 200), followed by 1600 level, if the index dropped below 1600, it will have another 50 points of free fall until 1550 level (Fibonacci level of 61.8%).

FKLI

Short Position Preferred…

Short position remains preferred and investors should look for opportunity to initiate short position instead of searching for opportunity to initiate long position. The risk of holding long position is very high. Any level near to 1650 should serve as a good level to initiate short position.

For today, the immediate support is seen at 1624 level, followed by 1600 and the immediate resistance is seen at 1640, followed by 1645 level.

FCPO

Testing the Downtrend Line…

The immediate tough resistance will be at 2550 (the downtrend line). The FCPO is expected to resume its 200 points trading (2400 to 2600). Provided the 2600 level can be taken over convincingly, only we should see the FCPO to re-challenge the 2800 level (SMA 200). 

Not much to be expected as the FCPO will remain in the range of 2600 to 2400 levels. The immediate support is seen at 2500 level, followed by 2425 level (SMA 30) and the immediate resistance is seen at 2450 level, followed by 2420 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.