Good Morning Traders,

Lets get started.

We have some numbers to be released, but not major ones and their ranking in terms of how much it would effect the market is medium. So we still have to be watchful for choppiness as tomorrow is also a banking holiday.

Let us look at how the US market closed last Friday night. If you have not read our weekly updates on the S&P and the CME grains, you can click here.

The Dow closed up 24 points or 0.18% to close at 13,228
The S&P500 closed up 3 points or 0.24% to close at 1,403

The Nasdaq closed up up 19 points or 0.61% to close at 3,069

As of this writing, we are now trading at 1400 in the S&P up 1.5 points from the last close. It remains to be seen if we can continue this move up after breaking upside from the flag pattern. If so, then perhaps our local market can have some relief from the recent down swing too. There is not much action yet in premarket trading so we will let more price play out to give us a clue later on.

Let us move back to our local market.

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Guys, I will do the daily support and resistance levels first, and then come back and finish the weekly ranges later on as I do not have enough time this morning.

FKLI

Well well.. last week's bar made a higher low on the daily chart, which is a good thing.. Perhaps we can have a bounce back to test the 20ema soon? Or would traders and investors be spooked after the Bersih last Saturday and continue to liquidate their stocks holdings all the way to election time? This remains to be seen.

One of the dangers of predicting a direction before price has even move is that you are right 50/50 of the time. You will increase the probability of your trading success if you wait for more confirmation from price before entering the market although you can have a bias as to where the market would go. But ultimately, you still need to know our levels and trade according to price action.

If I were to look at the daily chart, price seems a bit far from the 20ema so I am in favor of a fade back to test it in the coming days. After that, I will probably look for a spot to swing a short if we are not able to break and close above the 20ema.

In the Weekly chart, we are trading above the 20ema still and the low of last week actually went down to test it at near 1555. There is a possibility that we might go back down to test the 20ema too in the weekly so we have to be watchful of that too.

In any case, we will follow the price action and trade according to our support and resistance levels. If you are planning to buy, make sure it is at where support is holding nicely and if selling, at where resistance is holding nicely.

Here are the trading levels for today:

FKLI

Upper Resistance: 1569, 1572, 1575, 1578
Lower Support: 1565, 1562, 1558, 1555

Cash Index

Upper Resistance: 1571, 1573, 1576, 1578
Lower Support: 1563, 1561, 1558, 1553

Trade safe and make some money!

Best Wishes,
Tech Trader

P/s: I'll come back to correct the typos later. Market opening soon! Ciao!