23 April 12 - Daily Support and Resistance Levels and Weekly Range - FKLI, KLCI & FCPO

Morning Traders,

Its now 8.06am so lets get started.

Lets look at how the US market closed last Friday night.

The Dow closed up 65 points or 0.65% to close at 13,029
The S&P500 closed up 2 points or 0.12% to close at 1,379

The Nasdaq closed down -7 points or -0.24% to close at 3,000

Alright last Friday was options expiry and the market was trading in a small range too. The S&P was trading within a range of 12 points, which is not that unusual for a Friday with options expiry.

This morning in the pre-market opening, the S&P gap down slightly during opening but have pretty much covered that gap and is now just down 0.75 points at 1374.50. There should be support at 1365 as the trend line is there. If you have not read our weekly update, please click here.

There will be no economic report tonight so I think we will have a nice range to trade today. Alright lets move on to our local market.

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 FKLI - Daily chart

Alright.. so how will we do this week? The KLCI closed as a red bar for last week. The S&P is due for a breakout from the flag formation and it remains to be seen which way the break out will be. As of now, we will trade accordingly to how the market is dictating to us.

We still have a few levels of support below to break through and we are trading close to the 20 ema on the daily chart. Until we trade past below the 20ema and remain closed below it conclusively, I will hold the opinion that the general uptrend is still intact although it seems that we are quickly approaching that level soon.

So, with no numbers today, we may have a nice range to trade today so trade carefully. Buy at where support are holding and if you are looking to sell, do it near where resistance is holding nicely.

Here are the levels for FKLI today.

Upper Resistance: 1588, 1590, 1592, 1595
Lower Support: 1585, 1580, 1578


KLCI

Upper Resistance: 1595, 1600
Lower Support: 1590, 1587, 1583 

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Weekly Update

Refer to the next KLCI weekly chart below.

It seems like we have been trying to break the 1600s level over and over again but could not seem to do it, even when the whole regional was rallying during last week.

I wonder if it is due to people selling some of their positions with the election looming over the horizon taking advantage of the current high price now. If that is the case, we might see more selling to come perhaps?

We are still trading above the 20ema in the weekly chart so I am still of the opinion that the general trend is still up. But I would be wary of a downside break if the US market does the same.

So trade carefully. Support are still holding for now, but once that break, we might see a downside swing.

The weekly range for KLCI for me are:

Upper Weekly Range: 1602
Lower Weekly Range: 1580

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FCPO

So

So, what to expect for our FCPO this week? If you haven't read our weekly update on the 4 CME grains namely Soybean, Soybean Oil, Wheat and Corn, you can click here now. These other grains product have a close relationship with our FCPO contract. It is not surprising at all that our FCPO's late rally last Friday evening coincided with the rally of these grains product in the pre-market session.

So, I think we have closed the gap from the big gap from 3 weeks ago already. And since then, we have also broken the bear trend line in the daily chart during last Friday's rally. Usually after a trend line is broken, price will attempt to test the previous trend's extreme before establishing the new trend.

For me, should the Soybean Oil and Soybean perform and over come their resistance, and Wheat and Corn bounce from the lows, I think our FCPO will have upside potential too. But if these CME grains are performing poorly, it will have a drag on our FCPO prices too.

So, I will follow closely these other grains product and will update here if there are any big changes.

Here are the weekly range for the FCPO contract:

Upper Weekly Range: 3600
Lower Weekly Range: 3440

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Best Wishes,
Tech Trader

P/s: sorry for typo. I will come back to correct it later during free time. FKLI opens in 3 mins. Ciao all! Make some dough!