Thursday, December 27, 2012

FKLI - Bearish Engulfing, Failed 1,678 Level (Dec 27)

Hi all.

I was checking on today's closing & saw a BEARISH ENGULFING candle at close. Hence, did a quick analysis on FKLI.

Previously, on Dec 24, price touched an all-time high of 1,685.5, albeit closing lower at 1,676 on that day.
Yesterday (Dec 26), we managed a close at fresh high of 1,681.5, the first close above Oct'12 peak of 1,678.

However, today, selling pressure took over late afternoon, pushing price down to close near day's low of 1,675, a first close below the trendline supporting the extended Wave C rally.
A close in a dreaded Bearish Engulfing candle further amplified the bearishness in the afternoon.

FKLI - Bearish Engulfing signal end of Dec bullishness? (Dec 27)

I've been waiting long enough to SHORT this dragging rally top, today's candle just gave a reminder for me to start monitoring FKLI again, after being away from the market for over a week.

Anyway, I will be smart enough to avoid a SHORT before the year's close.
I will keep an eye on the price movement & take my position, if any, in the fresh contract month of Jan'13, instead.

Meanwhile, let's watch if the bearish engulfing candle gets a confirmation in the last two days of trading for the Year 2012.

Enjoy the year-end holiday!
Keep Hungry & we shall Hunt again in 2013!! :)


  1. I haven't see strong reversal signal on the underlying FBMKLCI yet.

    Hence, adopt a 'Monitot-&-Wait' approach is the best thing to do for ambitious SHORTies like me...LOL...:)

  2. Hi all.

    It seems like there's some confusion among readers regarding my posts.

    I'd like to make it clear that,
    my analysis are mostly targeting short-term gyration in the market, over 1day to a couple of days.
    The technical term for it would be 'Swing Trading'.

    If you are a positional trader,
    u may be BULLISH Dec'12 through to Feb'13. With Mar'13 carrying GE-13 uncertainties.

    If you are a day trader,
    u might have already shorted the FKLI when it could not breach the 1,684-85 resistance during the day (Dec 27) itself, even before it managed to close with slight bearishness.
    You could have easily scooped a nice 6-8pts profit for the day.


    I usually analyze the bigger trend, over a few weeks or months, to gauge the general direction of the market.

    For FKLI, I'll do that at the end of each month.
    To summarize price movement over the month & also to update the change of trend/sentiment, if any.

    Hence, unless otherwise stated,
    my daily postings updates previous/the day's price movement, do TA, combining major macroeconomic data due for release, all that could potentially dictate the direction for the ensuing day(s).


    Hope this gives a clearer picture of my postings.

    I will work on categorizing my posts, bring in more educational stuff, & other items as suggested by some of my readers.
    Thanks for their suggestions.

    For those who have not sound their ideas, please feel free to drop me an email at:
    Your comments is much appreciated.

    Thanks to all !! \(^o^)/

  3. - Today (Dec 28) -

    FKLI closed at 1,684.5, slightly over yesterday's bearish engulfing candle's high.

    Hence, erased yesterday's bearishness.
    Plus, coming Monday will be the last trading day for 2012, watch out for window-dressing spike.

    I still maintain slight bearishness into early Jan'13.
    Followed by mild bullishness for a CNY rally.
    After CNY, uncertainties may haunt the market until GE announcement & dismiss of The Parliament.


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