Kuala Lumpur Stock index futures: Stop out/SA
June futures closed lower by 6.0 point at 1347.5 on relatively low volume of 8,992 lots.
1. We continue to stay out as price closed within the Bollinger bands.
2. But if FKLI can close below 1348 today we would turn short.
3. Otherwise, any close above 1348 could be a “buy”.
4. We know that July is already below 1348. July closed at 1339.
5. But it is possible for July to rise to cover the down-gap and close above 1348 today.
6. If you are a contrarian, you would be buying July at the open and place sell-stop at 1334 OL but do not short yet.
General commentary: The Dow rebounded by 90 points and the ringgit was up by 160 pips but FKLI did not rebound in tandem. What a disappointment. Let us see if we are just as anemic today. If FKLI closes below 1344.0 OL (June contract), then cut loss on longs. If you are trading July contract, the stop loss would be 1334.5 OL.
Upside Fibonacci target 1466(Revised on June 15)
Downside targets: 1294/1257/1212
Ichimoku chart: (Based on Kumo (clouds) FKLI is still long. Kumo support is at 1206. Ichimoku chart will turn short at 1205 OL) (Updated on June 11, 2007).
Average True Range for KLFE: A.T.R. is 15.61 points for FKLI futures. This implies you need to put a stop above/below this A.T.R. or you can get stopped out due to the volatility factor. We advocate a 1.5 x or 2 x the ATR. We are using a 5 days ATR.
To get the daily KL Stock Index Futures Outlook, subscribe to our daily stock and futures newsletter at http://www.picapital.com.my/
Showing posts with label downtrend. Show all posts
Showing posts with label downtrend. Show all posts
Friday, June 29, 2007
Kuala Lumpur Stock Market Outlook : Forecast for the day, 29th June 2007 !
KUALA LUMPUR STOCK MARKET OUTLOOK: Forecast for Friday, June 29, 2007: KLCI can fall further if 1348 breaks down but any rebound can ‘save’ the market from a downtrend. Watch!
Technically speaking:
1. As at Thursday’s close at 1350.72 the KLCI was lower by 6.71 points or 0.49%. Losers led gainers 511 to 393. Trading volume was 1.0 bln shares.
2. The local bourse was under selling pressure alright with stocks like BAT, IJM, KLK, IOICORP, BURSA, ASTRO, HLFG, SIME and COMMERZ weighing down on the KLCI.
3. Stocks are weak, and many of our stocks have triggered sell signals, like MRCB, EMICO, ENCORP, AIRASIA, ATIS, FABER, KUB, PBBANK-CA.
4. They are sold out as they have hit our sell-stop levels.
5. Right now, with the KLCI at the brink of falling below the lower Bollinger band, we would rather be safe and reduce positions by selling out those that have hit our stops.
6. But if the KLCI does not fall below 1348, the lower Bollinger band, but instead stage a rebound today, we may have to r-enter some stocks that we have sold out.
7. But as of yesterday’s close, we would classify this market of ours as weak.
8. Today we would wait-and-see, and stay out of the market.
9. There is no stock to watch.
10. The ringgit strengthened back from 3.4810 to 3.4650 for a gain of 160 pips. This could be a hint of a stock market rebound today.
CONCLUSION: The Dow rebounded 90.07 points, yet we lost 6.71 points or 0.49%. What is going on? It would seem that nothing works for the Malaysian market, regardless of how the Dow performed. What a disappointment. We hope to see a rebound today as any fall below 1348, the lower Bollinger band support may result in lower lows. Note that the RSI, stochastic and MACD indicators are already on sell signal.
Long-term Upside Targets:1492 (Target amended on 15/6/07).
Immediate downside targets: 1319/1291/1222
To get the daily KL Stock Market Outlook, subscribe to our daily stock and futures newsletter at http://www.picapital.com.my/
Technically speaking:
1. As at Thursday’s close at 1350.72 the KLCI was lower by 6.71 points or 0.49%. Losers led gainers 511 to 393. Trading volume was 1.0 bln shares.
2. The local bourse was under selling pressure alright with stocks like BAT, IJM, KLK, IOICORP, BURSA, ASTRO, HLFG, SIME and COMMERZ weighing down on the KLCI.
3. Stocks are weak, and many of our stocks have triggered sell signals, like MRCB, EMICO, ENCORP, AIRASIA, ATIS, FABER, KUB, PBBANK-CA.
4. They are sold out as they have hit our sell-stop levels.
5. Right now, with the KLCI at the brink of falling below the lower Bollinger band, we would rather be safe and reduce positions by selling out those that have hit our stops.
6. But if the KLCI does not fall below 1348, the lower Bollinger band, but instead stage a rebound today, we may have to r-enter some stocks that we have sold out.
7. But as of yesterday’s close, we would classify this market of ours as weak.
8. Today we would wait-and-see, and stay out of the market.
9. There is no stock to watch.
10. The ringgit strengthened back from 3.4810 to 3.4650 for a gain of 160 pips. This could be a hint of a stock market rebound today.
CONCLUSION: The Dow rebounded 90.07 points, yet we lost 6.71 points or 0.49%. What is going on? It would seem that nothing works for the Malaysian market, regardless of how the Dow performed. What a disappointment. We hope to see a rebound today as any fall below 1348, the lower Bollinger band support may result in lower lows. Note that the RSI, stochastic and MACD indicators are already on sell signal.
Long-term Upside Targets:1492 (Target amended on 15/6/07).
Immediate downside targets: 1319/1291/1222
To get the daily KL Stock Market Outlook, subscribe to our daily stock and futures newsletter at http://www.picapital.com.my/
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