FBMKLCI Futures- Daily Message 28 April 2011

FKLI bias turned down after failing to stay above morning low of 1533. But a close above 1530 today likely turn bias up.
Support is still the area of 1520 - 1518, which underpinned price on Tuesday. Thereafter, expect support at last week's low of 1510.
Resistance is now at 1530 and the the area of 1540 - 1542, the low of 2 weeks back.
The longer term trend is still up but price has to close above 1580 to confirm it.
Sentiment was weak as futures was priced cheap to cash.
The 21 day moving average is now at 1534.

FBMKLCI Futures - Daily Message 26 April 2011

FKLI bias stays down but it needs to close below 1520 to keep bias intact. A close above 1530 will turn bias up.
Support is still the area of 1520 - 1518, and then last week's fasle break of 1510.
Resistance is now expected at 1530, the high of yesterday and then the area of 1540 - 1542.
The longer term trend is up but price has to close above 1580 to confirm it.
Sentiment was muted as futures was priced about fair.
The 21 day moving average is now at 1534.

FBMKLCI Futures - Daily Message 25 April 2011

FKLI bias stays down and a lower close should keep bias intact.
Support is now the area of 1520 - 1518 and then 1510, the low of last week.
Expect resistance at 1524 and then again, the area of 1535 - 1542.
The longer term trend is up but price has to close above 1580 to confirm it.
Sentiment was neutral as futures was priced about fair.
The 21 day moving average is now at 1533.

FBMKLCI Futures - Daily Message 22 April 2011

FKLI bias has turned down after failing to close above 1535 resistance level, though bias will turn up again should it close above it.
Support is still 1524, the low of Wednesday and thereafter 1518, Tuesday's morning high. Stronger support expected at last week's low of 1510.
After 1535, expect selling around the area of 1540 - 1542, and then April high of 1562.
The longer term trend is up but price has to close above 1580 to confirm it.
Sentiment was surprisingly positive, as futures was priced at slight premium to cash.
The 21 day moving average is now at 1533.

FBMKLCI Futures - Daily Message 21 April 2011

FKLI bias stays up but it has to close above 1535 resistance level to keep bias intact.
Again, expect resistance between the area of 1530 to 1542, the 38% to 62% retracement level of April decline.
Support is now 1524, the low of yesterday and then 1510, the false break of Monday.
The longer term trend is up but price has to close above 1580 to confirm it.
Sentiment was somewhat weak as futures was priced cheap to cash.
The 21 day moving average is now at 1532.

COMEX Gold - To Break or Not?

Price is moving higher, both in the short and longer term basis, though price right now is facing resistance at 1500 psychological level. The longer term trend of price is still up as it is above its weekly moving average (chart 3) and the 2- year uptrend line is still intact (chart 2).

In the shorter term, price is trending up as it continues to make sequence of higher high: 1450, 1480 and 1500. Price is also above its moving average. Do note however, RSI showed that upward momentum has weakened in the past few days (chart 1).

It is clear that 1500 is the immediate resistance, given the round number which also confirmed by price action, where price consolidated between 1488 and 1500 for almost 2 days now. Therefore, expect price to trend in the direction of break.

Given the trend, price is expected to break above1500. Daily stochastic is still signals buying mode (chart 2) and the recent consolidation can be seen as easing the shorter term overbought condition. Nonetheless, the level could be hard to break and may require further consolidation. If that is so, the break and close below 1488 should be the first sign. Further support expected at 1477, a prior high and recent RSI oversold level (chart 1), and recent lows of 1450 and 1410.

Do note that the Gold producers’ index has yet to confirm the new high set by gold. A close above 600 would be great for the uptrend, adding to the already confirming silver. A failure to close above 600 could be a cue for a strong resistance at 1500.

View the full report here http://www.osk188.com/Dindex.jsp.

FBMKLCI Futures - Daily Message 20 April 2011

FKLI bias has turned up but price has to close above 1524 resistance level to keep bias intact.
Further up, expect selling within the area of 1530 - 1542, the 38% to 62% retracement level of April decline.
Support is still 1510, which saw false breakout yesterday, and thereafter 1505 and psychological 1500.
The longer term trend is up but price has to close above 1580 to confirm it.
Sentiment was upbeat as futures was price at slight premium to cash.
The 21 day moving average is now at 1530.

FBMKLCI Futures - Daily Message 19 April 2011

FKLI bias turned down after price failed to close above 1524 after trading above it in morning trade.

Nonetheless, bias may turn up if it closes back above 1524 today.

Support is still 1510, which supported price twice last week and then 1505 and psychological 1500.

After 1524, expect resistance at the area of 1530 - 1542, the 38% to 62% retracement level of April fall.

The longer term trend is up but price has to close above 1580 to confirm it.

Sentiment stayed sombre as futures was priced cheap.

The 21 day moving average is now at 1530.

FBMKLCI Futures - Daily Message 18 April 2011



FKLI bias is now neutral. The failure to trade above 1524 resistance weighs but the late rally in price is supportive. 

A close above 1524 resistance, not too far from Friday’s high likely turn bias up. Expect selling at 1530 and the area of 1537 and 1540, midweek high.

Support is still 1510, where price was supported twice last week and thereafter 1505 and psychological 1500 level.

The longer term trend is up but price has to close above 1580 to confirm it.

Sentiment stayed weak as futures was priced at slight discount to cash.

The 21 day moving average is now at 1526.



FBMKLCI Futures - Daily Message 15 April 2011

FKLI bias turned down and price has to close below 1510 support level to keep bias intact.

Further supports are expected at prior low of 1505 and then the psychological 1500.

Resistance is still the 1524 level and after, yesterday's high of 1537.

The longer term trend is up but price has to trade above 1580 to confirm it.

Sentiment stayed downcast as futures was priced at discount to cash.

The 21 day moving average is now at 1528. 

FBMKLCI Futures - Daily Message 13 April 2011

FKLI bias stayes down and another close below 1520 should keep bias intact.
Support is now the prior resistance of 1518 and thereafter the late March of 1505. Light support may come at 1513.
Resistance is now expected at 1524 and then 1530. Thereafter, selling may come at yesterday's high of 1540.
The longer term trend is up but price has to close above 1580 to confirm it.
Sentiment stays weak as futures was priced at discount.
The 21 day moving average is now at 1524.

FBMKLCI Futures - Daily Message 12 April 2011

FKLI bias stays down and a close below 1536 should keep bias intact.
Immediate support is now at 1530 and thereafter the significant 1524.
Expect resistance at the area of 1540 - 1542, not too far from last weeks low, and then psychological 1550.
The longer term trend is up but price has to close above 1580 to confirm it.
Sentiment stayed weak as futures was again at discount to cash.
The 21 day moving average is now at 1522.

Hang Seng Futures - Testing 24500

A new price cycle probably has begun and may likely end the 6 months sideway movement. Price is still moving higher in the shorter within a longer term uptrend.

Looking at the price movement, price may have made a bottom on 17 March. Assuming the cycle started in Dec, the cycle is 62 days long. Though it is the shortest of prior cycle, the combined cycle is about the same 138 (70+68) and 137 (75+62), increasing plausibility of Mar 17 bottom.

As such, given cycle length of about 60 day, the current cycle likely end the 6 month impasse. An upcycle should see price trading above 25000 by around early May while a downcycle likely see failure of breaking 25000 and then trading below 22000.

At the same time, there are few positive: 1) Violation of 5 month downtrend; 2) 3 long white candles on the weekly chart; and 3) Good upward momentum. This should lend support for upcycle but again, price has to respond accordingly.

Meanwhile, in the very short term, price is trading within the blue channel (chart 1). It wouldn’t be a bad idea to close long position on break of the 3 week channel. Based on 62% Fibonacci retracement, a price retracement of up to 23000 is still positive for the uptrend. Again, expect higher price if 24500 broken.

View the full report here http://www.osk188.com/Dindex.jsp. 

FBMKLCI Futures - Daily Message 11 April 2011

FKLI bias has turned down though a close above 1555 likely turn bias up again. Note too that price is just above psychological 1550 support level. Price has to close below 1550 to keep bias down.
Further down, expect support at 1547 and then prior highs of 1540 and 1530. 
Resistance is now 1555 and thereafter the uncovered gap of January, the area of 1562 - 1564.
DO notice that cash has not traded below Thrusday low, look for both cash and futures to trade in sync again today.
The longer term trend is up but price has to close above 1580 to confirm it.
Sentiment turned downcast as futures was priced at discount to cash.
The 21 day moving average is now at 1520.

FBMKLCI Futures - Daily Message 8 April 2011

FKLI bias stays up and a close above 1564 should keep bias intact.
Again, expect selling at uncovered Jan gap of 1562-1564 and thereafter the all time high of 1580.
Support is now the prior resistance of 1555. Further down expect resistance at the area 1550-1547 and prior highs of 1540 and 1530.
The longer term trend is up but price has to close above 1580 to confirm it.
Sentiment is neutral to weak as futures was priced at slight discount to cash.
The 21 day moving average is now at 1518.

FBMKLCI Futures - Daily Message 7 April 2011

FKLI bias turns up after the close above morning high, but it needs to close above 1555 to keep bias intact.

Further up, expect resistance at uncovered Jan gap of 1562-1564 and thereafter all time high of 1580.

Support is now the area of 1550-1547 and then prior highs of 1540 and 1530.

The longer term trend is up but it has to close above 1580 to confirm it.

Sentiment was neutral as futures was priced about fair.

The 21 day moving average is now at 1516.

FBMKLCI Futures - Daily Message 6 April 2011

FKLI bias is neutral after the mixed closed. The close below morning low is weak but the close right at 1550 is supportive.
Resistance is still 1555, the low of Jan consolidation, which price has to close above and then the gap of 1562-1564.
After area of 1550 - 1547, expect supports at prior highs of 1540 and 1530.
The longer term trend is up but price has to close above 1580 to confirm it.
Sentiment was slightly subdued as futures was price at discount to cash.
The 21 day moving average is now at 1514.

FBMKLCI Futures - Daily Message 5 April 2011

FKLI bias stays up and a higher close should keep bias intact.
Following succesful close above 1555 resistance, expect selling at uncovered gap of 1562-1564 and thereafter 1570 and then all time high of 1580.
Support is now todays low of 1547, and then prior highs of 1540 and 1530.
The longer term trend is up and price has to close above 1580 to confirm it.
Sentiment turned neutral as futures was price about fair.
The 21 day moving average is at 1513.

FBMKLCI Futures - daily Message 4 April 2011

FKLI bias stays up and a close above 1550 should keep bias intact.
Light resistance is expected at 1555, the low point of Jan consolidation and the uncovered gap of 1562 - 1564.
Support is now the previous high of 1540 and then another prior high of 1530.
The longer term trend is up but has to close above 1580 to confirm it.
Sentiment is somewhat cautious as futures was priced at discount to cash.
The 21 day moving average is now at 1512.