I will post the market summary a bit later tonight.
Wishing all of you a great evening and talk to you all later!
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Summary:
Alright what a strong day we had in our local market! Below are the traded priced for today.
KLCI Cash Index
Opened at 1594.57 from 1596.27 the previous day.
High 1603.96
Low 1590.27
Close 1603.78
FKLI April Contract
Opened 1590.00 from 1584.50 the previous day
High 1601.50
Low 1583.50
Close 1597.50
This is the Daily Chart for the Cash Index.
In the morning after we traded at new high at 1598, sellers suddenly came in to sell sharply and the Cash Index quickly drop to 1590.27 before proceeding to go up to new highs afterward.
This caused the April contract to fall from 91-92 area right down to 83.50 in a flash too which was just above our second level of support of 82. But just as fast as it fell, it also went back up to stay at 85 for a period of time. After spending a fair bit of 85-86 area, we slowly trend up to 87 and then proceed to make new highs too throughout the day before giving back a bit of the gains after cash close.
Now, the April contract fulfilled something which is known as a gap-fill. Gap fill is a funny subject because it is very inconsistent. Some traders believe that all gaps need to be filled, which it often does, and while sometimes it totally did not fill just like our FCPO today.
But it doesn't mean that the FCPO would not fill the gap. Perhaps it may fill it tomorrow, or even a week from now. Or perhaps it may not even fill until a period of time has passed. Which is why it is very difficult to plan and one can only learn and discern when a gap will fill, whether fully or partially, will materialize through experience in the market.
However, traders need to know that such things exist so that they will take note of it and trade accordingly to the market of that time.
But we are now making new highs of 1603.96 in the Cash Index. Can we maintain this upside strength? It remains to be seen. But as with most new highs, I am more likely to stay upside biased especially if the overseas market also demonstrate such sentiments too.
So our lower trend line held nicely again and there was no over shoot. However we are quickly approaching the upper resistance of 1606 and if we can break that, maybe have an outside chance to touch 1617 which is our upper weekly range.
So I will update again the possible levels for Tuesday tomorrow before the market opens.
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FCPO
Haha.. alright lets talk about the FCPO contract. First of all, I knew we were going to gap up big. Now by big, I didn't expect it to gap up 75 points! Goosh!
Our levels posted this morning was as follows:
Upper weekly range: 3500, 3550
Lower weekly range: 3438, 3374
and
Daily Upper resistance: 3477 and 3494.
Daily Lower support: 3441 and 3402
We traded to the following prices today:
Open 3508 from previous close of 3433
High 3541
Low 3501
Close 3532
Ok when price opened for trading, we totally blew past my daily levels.. such was the energy of the trade! Gosh.. I'm glad I wasn't totally wrong as we are still trading within our weekly range (what a cheap comeback.. please forgive me.. lol.. )
So here we are now.. no gap-fill, but no substantial price movement after the up-gap. We are close to testing the 3550 range soon.
I will want to wait for the Cash close for the 4 CME grains tonight to see whats in store for tomorrow.. Will we finally fill the gap? Will we push ahead strongly again? We will let the price action be our guide. So I'll update again the levels for FCPO tomorrow morning lah..
So wishing everyone a great evening and I'll talk to all of you again tomorrow..
Take care!
Best Wishes,
Tech Trader
Best Wishes,
Tech Trader
p/s: Due to under utilization of the side bar, I am considering to take it off from the site.. perhaps if there is such a need I will install it on again. Cheers. :)
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