24th June, Monday (DJIA)

DJIA

Next Important Support – SMA 100…

The DJIA dropped below SMA 50 for the 1st time in this year. This might be the start of the downward trading. Investors will need to pay additional attention on the next important support - SMA 100 (14600). Trading below 15000 level may indicate more downside moving forward, especially if the SMA 50 is not able to be supported. The index never trades below the SMA 50 since the start of 2013, thus, any drop below SMA 50 should attract more sellers in the market.

The immediate support is seen at 14600, followed by 14000 and the immediate resistance is seen at 15000, followed by 15200 level. 

FKLI

Range Trading to Resume?

As mentioned, the FKLI has been traded within the 1750 to 1790 range for the past 1 and the half months, any drop below/ above the range mentioned above might cause a strong trend towards respective direction.

Investors who are holding long position will need to take extra cautious as this might be the start of the downward trading, especially when the index has been trading below the SMA 20 (1770) for more than a week. Any rebound above 1780 should serve as a good level to initiate short position.

The FKLI might need to close the gap set after the GE13 (1720 – 1700) before any technical rebound can set in.

The immediate support is seen at 1750 level, followed by 1730 level and the immediate resistance is seen at 1770 level, followed by 1780 level.

FCPO

Hovering around SMA 200…

The FCPO is facing with its tough resistance at SMA 200 (2465 level). Investors should expect further tight range trading (within 200 points) for the coming few months until the SMA 200 is being taken over convincingly. Even taking over the 2500 level, the FCPO will face with its final tough hurdle at 2600 level (Fibonacci level of 23.6%). Provided both these levels can be taken over convincingly, more upside is expected.

The immediate support is seen at 2450 level, followed by 2400 level and the immediate resistance is seen at 2500 level, followed by 2550 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.