4th April, Thursday (Overall Strategies)

FBMKLCI

Long Waited Announcement…

Parliament finally being dissolved and we should expect market to be very volatile starting from now until the end of the GE-13. Whatever you have experienced yesterday will be expected to occur more frequent moving forward (50 points of trading range). 

What should investors do? Investors should remain conservative in new position initiation provided you have proper planning in place, else, staying sidelines might be the best choice. Please bear in mind that we do not take the risk when your probability of winning is less than 60%. Any upward trading should give us additional opportunity to take profit for your remaining stocks in your portfolio.

For the remaining of the week, the index is expected to trade within the 50 points range – 1650 to 1700 levels.

FKLI

Tighten your Seat Belt! Roller Coaster Game Started! 

The volatility that you have experienced yesterday will be expected to occur more frequent moving forward (60 points of trading range). However, in futures trading environment, volatility is equivalent to more trading opportunity. No matter what, investors should try to avoid holding long position for long term trading (any time frame more than a week) as the political risk remains high. However, intraday long position might be something worthwhile to take but always remember to keep your stop loss tight.

For long term investors (expected to hold more than a week), investors should look for opportunity to initiate short position instead of searching for opportunity to initiate long position. 

For today, the immediate support is seen at 1650 level, followed by 1640 and the immediate resistance is seen at 1690, followed by 1700 level.

FCPO

2325 Level – Supporting Well…

The FCPO regained its posture above the important support level – 2365 level (downtrend line). Provided this level can be taken over convincingly, more uptrend is expected. Else, the long term downward trading is expected to resume.

Not much to be expected as the FCPO will resume its tight range trading of 100 points – 2365 to 2500 level until either level is being taken over successfully.

The immediate support is seen at 2365 level, followed by 2325 and the immediate resistance is seen at 2400 level, followed by 2500 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.