Monday, April 2, 2012

Market Overview 3rd April 2012

Tuesday, 3rd April 2012. The FBM KLCI rose to historical high yesterday amid continuous support from regional economy stability and positive overall performance from U.S market as well. Other news to follow.

"-Japanese and South Korean shares managed to extend gains into the new quarter on Monday but Hong Kong shares lagged, with selected property companies trading sharply lower.

Japan’s Nikkei Stock Average JP:100000018 -0.05%  rose 0.6% while the South Korean Kospi KR:0100 +0.74% climbed 0.8%. The Australian S&P/ASX 200 index AU:XJO -0.20%  turned back from early gains to trade flat while the Hang Seng Index HK:HSI -0.42% edged down 0.3%. China’s Shanghai and Shenzhen markets were shut for a holiday."

FKLI- Its About Time.

Yes, its about time the equity index break out from its historical high after rallying continuously for the past six months. This was important moment for many traders who are waiting for the equity index to breach above its major resistance points and mark a new high never seen before. As mentioned on previous post weeks ago, it is not a fantasy for the FBM KLCI to soar for another new high for the coming second quarters. At close, the FBM KLCI rose about 7.45 points 1,603.78 while April contract ended about 13 to 1,597.50, the high for the day was 1,601.50. Technically, the April contract has breach the all time high above 1,600 level after it retraced for a few sessions previously on March. It was a tiring journey to the upside, some tricky correction along the way but it finally made it yesterday. Of course, it was not some impressive achievement for the equity index to reach 1,600 but it is telling us that the Bulls are capable to push the market above this level with ease. Nonetheless, 1,600 is going to be a resilient level as market is likely filled with traders who wish Long on the breakout versus traders who wish to cover their Long on major resistance level. It is going to be a vicious tug of war between Bulls and Bears around 1,600 for this week. For today, support is located around 1,586 while resistance is pegged at 1,612. 

Daily Pivot Point
R2= 1612
R1= 1604
S1= 1586
S2= 1576

FCPO- Upside Resume And Start With Gap Up. 

CPO futures gets turbo charged with optimism when the USDA report came out much more better than expected last Friday. Not only the prices for Soy products rose substantially, palm oil futures also reaping the same effect from the USDA news and closely mimic the Soy oil performance. The benchmark June start with gapping up about  RM70 and continue to rose to at least 10-months high without any form of retracement. At close, the benchmark June rose about xx to xx, the highest single day surge occur this year.  Bulls are significantly eager and not giving any chance for those intraday participants to Long on the pullback. Rising without looking back throughout the sessions, traders who Shorted last week are advised to track their margin closely as there might be no significant retracement at all if the market was able to continue rising for another two sessions. Unfortunately, there was less indication for the market to rise so swiftly as most of the technical reading on previous week did not give any hint for market recovery. To recap, three successive red candles (Bearish Harami followed by corrections for two sessions) happened last week and then market just opened gap up yesterday. On the other side, palm oil sentiment is likely improving with slightly better export data and lower expectation on stock piles build up for the second quarter.

Daily Pivot Point
Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.


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