Here are the charts for the weekly KLCI and FCPO.
Cash Index
We closed the week up in the but we gave back most of the gains late into the week although we regained some back on Friday.
We are trading near the bottom trend line as of now and next week we will start the week lower as indicated by the big negative close on the US futures on Friday trading.
Should the US market turn into a pullback swing, then we should have a down week also. I think the general trend of the market is still up. But perhaps we might finally have a pullback which will trade below the lower trend line? It remains to be seen.
I will post the Weekly range tomorrow morning before the market opens.
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FCPO
Wow look at that green bar! We started the week with a nice 75 points gap up following the strong close from the CME grains caused by the bullish USDA report last week. This has resulted in us having a freaking strong close in the week by having an upper trend line over shoot!
Now what can happen from here.. Usually after a trend line overshoot, and usually if there is a fundamental reason for it, then the momentum will push prices higher. Then we can connect the new bottom which will result in a straighter trend line which translate to a really strong trend!
However, if the buying momentum wanes, we are going to have a pullback into the pattern and we will then have to see if the bottom trend lines hold.
The CME grains mainly Soybean Oil, Soybean are both trading near the upper resistance area but had strong closes just above the immediate resistance level. There will be some upper resistance ahead, but it doesn't mean that price cannot over come it. So we will let price action unfold for us to gauge how to look at the market accordingly. How these contract perform will effect our FCPO and vice-verse.
I will update here again as and when there are any big news.
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Alright! Good night and talk to you all tomorrow! Ciao! :)
Best Wishes,
Tech Trader
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