FKLI * FCPO Weekly Chart

Good morning all,

As promised from yesterday's post, here are the weekly charts for FKLI and FCPO chart.

We'll start off with the index first. currently as of 8.30am, the S&P500 futures is trading up 3 points and the Dow Jones futures is trading up 26.00.

We have a host of economic event coming up and you can look at it at forexfactory's website in the link below.

In the US, we start Monday with Bernanke speaking followed by Pending Home Sales so expect trading to be in a smaller range as traders tend to stay out of the market to see the outcome of these events. On Tuesday, we have the consumer confidence, and Wednesday, we have the core durable goods Orders, Thursday, the unemployment claims report and on Friday, we have a few reports but which may not move the market as much. All these are going to have an effect on the market sentiments as a whole.

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I am still biased to the upside for our local market. The weekly possible range could test the high of 1595 (July 2010) and if we break that, test the 1600-1606 level. I think the lower trend line of the wedge should hold with support around the area of 1570-1575. But these are just the possible range. Remember that we have a host of important economic indicator announcement this week in the US and traders will want to wait for the result of these reports for more indication of the market direction after the 'smart money - big players' has entered the market. Expect smaller daily range unless there is significant news on the wires.

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As for our FCPO, I am also biased to the long side still. The minor trend line from the last 3 weeks is still holding and the other grains product mainly the soybean oil futures, soybean futures, wheat futures and corn futures seems to be demonstrating some upward biased sentiment. We are coming into the 3460 resistance level. If we can trade over that with conviction, we may test the 3500-3540 range. As for support, I expect the minor trend line to hold until it is broken conclusively. The area around 3300-3344 should hold.

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I am still relatively quite new to the FKLI and FCPO market hence it will have a bit of time to adjust and get used to its price action. However, I will try my best to implement what I have learned trading other markets into these local contracts. Therefore, I expect to make many errors before I can consistently get this better. Please bear with me in this transition period and do share your thought with me.

Thanks you very much!

Regards,

Tech Trader