Monday, February 4, 2013

Jan 31 - FKLI & FCPO (Week 5 close)

Hi All.

Another 3-day weekend to bring an end to Jan'13 trading.
The coming week is a fresh start to Feb'13, 5-day trading, but I reckon trading volume will diminish as the week progresses, with CNY Day falling on the coming Sunday & next Monday (Feb 10&11).



The past week, Jan'13 Week 5, saw FKLI stabilized around 1,610-1,625 range.
Sentiment has also calm down following the plunge frenzy two weeks ago.

Daily candles has form several higher lows, which defines an uptrend, though this might be just a temporary retrace from the primary downtrend from 1,705 peak, for the moment.

Momentum indicators had improved to the bullish side over the week. MACDh continue to shorten to the upside, RSI stabilizing at 20-level, W%R tilted up with a higher low & broken above its previous downtrend line.

FKLI - Increasing Bullish sentiment (Jan 31)
On FKLI, Support remains at 1,615-25, while upside targets are at 1,635 & 1,647.


On Friday (Feb 01), the US Dow Jones Industrial Average (DJIA) closed at 14,009.79, its first close above 14,000 mark since Oct'07, pre-crisis high.
The recent bull run has continued despite a lower than expected Jan'13 Payroll data at 157,000 & higher unemployment rate reading at 7.9%. Not to mentioned the earlier released dismal 4Q'12 US GDP reading of -0.1%, a first drop since last recession.
However, MSM generally relate the recent rally to an overall improvement in manufacturing, construction/housing data, & the latest rise in consumer sentiment to 73.8.

A long term fibo projection on the DJI gives further upside before hitting resistance around 14,340-500.

DJI - Potential new high at 14,300-500 (Feb 01)

We'll see if the bullishness on the US bourses can spill over to our KLCI & FKLI.



Price rose furiously on Thursday (Jan 31), started with a opening gap to 2,532, swift rise past each 10pt intervals from 2,550-90.
Price peaked at 2,593 in the afternoon, before succumbing to selling pressure & closed nearer to its open price at 2,555.

A Shooting Star candle was formed on the daily, signalling potential pullback to the beautiful rally from earlier 2,230 & 2,330 lows to the latest high of 2,593.

A little market crowd psychology on the Shooting Star pattern:
The shooting star signals a change in momentum from up to down with the bulls forcing price to a peak but the bears battling back so that price closes near where it opens. 
~ Bulkowski's Encyclopedia of Candlestick Charts ~

Note though, SoyOil has performed strongly on Friday (Feb 01), which might further support CPO price. 
I'll see an open above Jan31 shooting star close/high as a potential continuation of the rally without a  pullback, violating the candle pattern itself.

We'll see tomorrow.
FCPO - Temporary pullback on Shooting Star (Jan 31)

Alright then!
Happy Hunting!! :)

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