7th February, Thursday (Overall Strategies)

FBMKLCI

Yesterday, the FBMKLCI closed below its important support level – SMA 200 but staged a rebound near to its psychological level (1600).

No matter what, the 1600 level is not a reliable support level, thus, it should not be taken as a good reference level. The only action that investors will still need to do – take as much profit as you can as more downside is expected ahead of the long Chinese New Year holiday.

The immediate support is at 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

Holding On your Short Position…

Investors should resume to hold on to your short position as covered above in FBMKLCI’s write up. The 1600 is not a reliable support level and it might be taken over easily. It will be safe to hold on to your short position until the election.

For today, the immediate support is seen at 1600 level, followed by 1580 and the immediate resistance is seen at 1620, followed by 1630 level.

FCPO

Immediate Tough Resistance – 2600 Level!

The immediate tough resistance will be at 2600 (Fibonacci level of 23.6% and the downtrend line). The FCPO is expected to hover around the 200 points range (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 2600 level, followed by 2700 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.