25th March, Monday (DJIA)

DJIA

Hovering Around 14500 Level…

The index is expected to hover around the current level to build the necessary foundation before further upside can take place. However, I am in the view that the current level is at its peak and minor retracement is expected to set in.

For the week, the immediate support is seen at 14500 level, followed by 14200 level and the immediate resistance is seen at 14600 level, followed by 14700 level.

FKLI

Window Dressing? Dissolution of Parliament? 

Which one will come first? We should not guess but should take precautions steps ahead of either outcome. If Parliament is not being dissolved by Tuesday, investors who are holding short position should take your profit and only initiate new short position for April starting next week. If Parliament is dissolved by then, investors can just roll over your position to April contract and remains holding your short position. Volatility is expected to be high for the remaining of the trading period until the end of the GE-13.

The index will re-test the important support – 1600 level, technically, this is considered a strong support level as this is a level that has been tested for more than 5 times but still manage to hold. However, ahead of the GE-13, 1600 level is expected to be taken out, is just a matter of time.

For this week, the immediate support is seen at 1620 level, followed by 1600 and the immediate resistance is seen at 1630, followed by 1650 level.

FCPO

Next Trading Band – 2400 to 2600 Levels…

As mentioned, if the FCPO can leap above the long term downtrend line (blue line) and the 2475 level, the FCPO will trade into the next 200 points territory (2400 to 2600). However, not much to be expected as the trading range remains tight (200 points only).

For the week, the immediate support is seen at 2467 level, followed by 2400 and the immediate resistance is seen at 2500 level, followed by 2600 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.