Wednesday, April 17, 2013

April 17 - FKLI, FCPO & Joining the Gold Fever

Hi All.

Haven't been posting on the market for a few days dy...:p

Since I last post, 

- FKLI hit a new high of 1,719 following the bullish pennant breakout. Still, it fall short of the 
  initial target of 1,740-50. 
- We'll see if the current pullback is mere temporary weakness, or we have actually topped at 1,719 
  high. Technical internals are siding the 1,719 top theory for the moment.
- Today saw a close in a nice little Shooting Star, hovering right over yesterday's long white. A lower 
  close (preferably after a lower open), shall confirm the pattern's nature as a reversal signal.
- Bulls need to bring price back above 1,710-20 level to continue the rally.
  Bears need to close price lower tomorrow, & preferably take out the 1,680-85 support asap to 
  secure their control over near term price direction.
FKLI - Shooting Star...Topped at 1,719? (April 17)

- FCPO broke below the strong 2,335 support level by starting the week with a breakaway gap.
- It then continued firmly south to 2,280 support level. Yesterday saw price bouncing between 
  2,280-2,310 range. 
- Today, tight consolidation most part of the day, before a decisive breakdown from the congestion 
  area in late trading. Price fall to 2,270 minor support in a hurry, before closing slightly higher at 
- We may see respite from the bulls in early trading tomorrow, as suggested by slight divergence on 
  the momentum. Watch 2,280 | 2,300-15 resistance. If not broken, we shall continue selling on 
  strength towards the fibo target of 2,230 crucial support.

FCPO - Bear Flag breakdown, Wave(v) in progress towards 2,230 (April 17)

 Last but not least, can't help but to join the latest hype in town.

The GOLD Fever !!

The precious metal shed nearly $300/ounce off its 'preciousness' within two trading session.
Initially, I believe its merely technical selling upon breakdown of the major 1,530-50 support band, following a weak China CPI data & >250pts plunge on the Dow.
Later, selling gathered steam, probably due to the hype over several other 'news', longer term investors started joining the sell-off.
Price plunge in a flurry of selling, which later turned into margin selling, I believe, leaving price free-falling >$100/ounce for two straight days.

CME decision to hike trading margin brought some relief, we saw price finally managed to find support near 1,320 level & bounces back a little.

A look on the chart revealed that price may have indeed hit a temporary low near 1,320 level, being 161.8% fibo projection target for the downswing from 1,900-1,550.
We might see some technical rebound, probably enhanced by bargain-hunting at low prices, towards 1,420-40 | 1,480-1,500 | 1,530-50 (now turned strong resistance).

Given the importance of the 1,530-50 support previously, price will tend to retest it, confirmed it has turned resistance, before we see further selling.
Hence, despite all the bearish tone we get over the wire, I believe we are in for some counter-rally on Gold in the near term.

We shall see then....:)

GOLD - May see temporary rebound after massive sell-off. (April 17)

Happy Hunting/Mining !! :)

1 comment:

  1. ~* April 18 *~


    - On the daily, formed a long-legged doji star.
    - Failed to confirm yesterday's Shooting Star reversal signal as the day close slightly higher at 1,702.5, from yesterday's 1,700.5.
    - Today's higher close seems to give bulls a slight advantage relative to the bears. We may continue with further consolidation tomorrow, with slight bullish bias.
    - Watch if bulls are able to push through the 1,711 resistance tomorrow.
    - Support still at 1,690-96 | 1,680-85



    - Price lingers around 2,264-2,272 low in the morning. Before slightly picking up steam & close the morning session above the range at 2,276.
    - Afternoon session started with a bang, price shoot up to 2,290 high at open.
    - Without much pauses in between, saw price continue to its run up, all the way to 2,315 day high. Forming a deep U- or V-shape rebound.
    - We may continue to see further bounce tomorrow towards the 2,325-2,335 gap. Nonetheless, expect price to retrace part of the rally first, given the steep slope of the afternoon climb.
    - Watch for strong support @ 2,295-2,305, followed by 2,280-85 | 2,265-70.
    - Resistance @ 2,325-35 gap | 2,350-60


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