09 Dec CPO/KLI Trading Commentary

09-12-13

Technical Outlook:

Forth continuous higher weekly closing at 2,670 indicate strong bullish trend on CPO and is expected to continue as the ADX reading remain strong at level 46. Uptrend signal from weekly is consistent with the daily charts where close rest above 20 days SMA, +DI curving up again and MACD looking to converge again from negative territory. Daily parabolic SAR at 2,687 and pivot resistant point of 2,685 will be served as significant resistance level for CPO.

Hourly reading of RSI trending upwards to 63.4, MACD diverge to +2 and ADX curving up to 27, all technical indicators above are signalling strong momentum on bullish trend. We foresee the last previous high at 2,678 will be resistance level for short term movement.  

Trade Recommendation (FCPO):

Intraday traders are recommended to long around 2,660 with target profit around 2,700 (second pivot resistance point) and stop loss at 2,620 (20days SMA). For overnight (long term) traders we recommend to long around 2,660 with target profit at 2,720 and stop loss at 2,620.  

Trade Recommendation (FKLI):
Global market correction has failed to affect solid performance of FKLI and US equity index encounter a strong rebound last Friday where majority foresee that bull run will continue. FKLI has shown its bullish momentum with closing higher at 1,821 despite drop in volume, indicated that could be accumulating from institution. It had tried to breach above 1825 however it fail while leaving daily high at 1825.5. Weekly ADX looking to cross above 20 level which means a significant bull run will be foreseen in next few weeks and this reading is in line with daily ADX. Intraday traders are advised to long around 1,820 with target profit at 1,835 and stop loss at 1805 (20 days EMA). Overnight (long term) traders are advised to long around 1,820 with target profit at 1850 and stop loss at 1800 (40 days EMA).