10 DEC FCPO/FKLI Daily Trading Commentary (Malaysia)

Short FKLI @ 1841 : Target profit (1820) Stop Loss (1850) Long FCPO @ 2650 : Target proft (2670-80) Stop Loss (2,610)

Technical Outlook (FCPO):

Daily closing at 2,639, hovering around the 20 days SMA again with ADX going down to 34, move in tandem with +DI slipping towards 25 and –DI surging up to 15. We notice a clear strong support for the prices was found from both 20days SMA and the uptrend channel, which is around parabolic SAR at 2,604, any movement below 2,600 will mean the breaching of supporting level and correction will expand further.

However, from the hourly RSI, we see that ADX and ±DI are consolidating with –DI looking to slid below level 30. This could mean a new hourly trend could be forming in next few bars. We further look for 30 minutes chart where the 30 minutes downtrend might finish soon since RSI rebounding from 35 earlier, and +DI looking to cross above –DI.

Trade Recommendation (FCPO):

Intraday traders are recommended to catch the rebound if the price reach above 2,650 which is the 20 period hourly SMA and target profit at 2.670-80 (second pivot resistance point), and stop loss at 2,610 (second pivot supporting point).

For long term overnight traders, as this could enter into few days consolidation period which trading around the range of 2,600-2,800, we advice to short if it breach below 2595 (around the psychological supporting level at 2,600) or else accumulating long position at weakness around 2,610 – 2,630 (target profit at 2,700 and stop loss at 2,595).

Trade Recommendation (FKLI):

We still maintain strong sell on FKLI as per yesterday with further supporting from chart pattern of reverse divergence from the reading of daily RSI:

Intraday traders can short around 1,840 with target profit at 1,820 and stop loss at 1,851. Overnight or long term traders are recommended to long at weakness which could be around 1,805 to 1,820, with stop loss below 1,800 and target profit around 1,850, it might not be happening today hence we shall closely monitor.