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 

  2,274.

- 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 !! :)