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.
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Showing posts with label stock index futures. Show all posts
Showing posts with label stock index futures. Show all posts
Friday, June 29, 2007
Tuesday, June 19, 2007
Kuala Lumpur Stock Index futures
Kuala Lumpur Stock index futures: Turn long/Sell stop at 1368.0 OL
June futures closed higher by 26.5 point at 1384.00 on relatively high volume of 6,960 lots.
1. FKLI leapt by another 26.5 points to close outside the upper Bollinger band, at 1384.
2. This is a strong buy signal. We have turned long at 1362.0 and we are maintaining longs.
3. Place sell-stop at 1368.0 OL.
4. We expect a strong rally today to “flush” out heavy shorts.
5. We should continue to see sharp rallies for now, until FKLI hits at least 1466.
6. Thereafter we will look for a toppish Japanese candlestick pattern to exit and maybe
even short.
7. For now, expect the “shorts” to be slaughtered!
8. Upside Wave 5 target is 1466. After that we look for a toppish Japanese candlestick
pattern before shorting.
General commentary: Finally, we have an upside breakout of a consolidation, exactly as we had anticipated. This consolidation started at least from April 5 and is therefore a 2½-month consolidation. As such, now that it is seen breaking out – you can expect a powerful rally. Shorts beware! Expect FKLI to hit 1466.
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 19.54 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 know more about the daily KL stock index futures, subscribe to our daily stock and futures newsletter at http://www.picapital.com.my/
June futures closed higher by 26.5 point at 1384.00 on relatively high volume of 6,960 lots.
1. FKLI leapt by another 26.5 points to close outside the upper Bollinger band, at 1384.
2. This is a strong buy signal. We have turned long at 1362.0 and we are maintaining longs.
3. Place sell-stop at 1368.0 OL.
4. We expect a strong rally today to “flush” out heavy shorts.
5. We should continue to see sharp rallies for now, until FKLI hits at least 1466.
6. Thereafter we will look for a toppish Japanese candlestick pattern to exit and maybe
even short.
7. For now, expect the “shorts” to be slaughtered!
8. Upside Wave 5 target is 1466. After that we look for a toppish Japanese candlestick
pattern before shorting.
General commentary: Finally, we have an upside breakout of a consolidation, exactly as we had anticipated. This consolidation started at least from April 5 and is therefore a 2½-month consolidation. As such, now that it is seen breaking out – you can expect a powerful rally. Shorts beware! Expect FKLI to hit 1466.
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 19.54 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 know more about the daily KL stock index futures, subscribe to our daily stock and futures newsletter at http://www.picapital.com.my/
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