Jan 11 - FKLI & FCPO

Hi All.

On Friday morning (US Eastern time), the government reported disappointing results that showed a sharply wider U.S. trade deficit in November. 

According to the U.S. Department of Commerce, the U.S. trade deficit widened in November to the highest point since April. The trade gap widened 15.8% to $48.7 billion in November.
Economists surveyed by MarketWatch had expected the trade deficit to narrow to $41.3 billion in November from a prior October estimate of $42.2 billion.

Ref: MarketWatch - Trade Deficit Widens Sharply to $48.7Bil

This add to the disappointment earlier on Thursday thart saw the weekly jobless claim came in higher than estimated at 371,000.

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On the local front, both FKLI & FCPO ended the week on a weak note. 

Further downside shall be observed in the coming week for both, more so with the cue from weak US economic data.

On FKLI

Price is seen finally violated the uptrend line that has supported the awesome Dec'12 year-end rally from 1,590 low.

On the daily, 

BB is closing in, with mid-band flattening, showing more consolidation/correction ahead.

MACD finally had a death-cross.

RSI retreated from overbought level, while W%R has dropped below its respective support level, too.

Hence, expect some short-term correction while the overall trend is still bullish as long as correction do not extend below 1,600pts.

FKLI - Trendline from 1,590 low violated (Jan 11)

On FCPO

Price continue down but see some rebound from short-covering before Friday's closing bell.

On the hourly, we can see price oscillating within a 70-80pts channels.

On a downtrend, the simple strategy of selling the rally, back to the BB mid-band or mid-channel line, will be able to return nice profits.

I'll be cautious when price reach 2,300 region, for any potential sign to a rebound. 

Any break below 2,300 will see sharp & furious drop, or maybe gaps, to find the major support level of 2,220-30. This level has been tested three times, over the past three months of Oct-Dec'12, & is proven strong to overcome.

I have a hunch that this drop is THE one that will send us down below the support at 2,220. However, this is just purely instinctual, believe it or not!

FCPO - Price Fall within Channels (Jan 11)

That will close Jan'13 - Trading Week 2.
Happy Hunting!! :)