Kuala Lumpur Stock Index Futures

Kuala Lumpur Stock Index Futures - Forecast for th

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Kuala Lumpur Stock Index Futures - Forecast for the day - 11 July 2007! Kuala Lumpur Stock Index Futures - Forecast for the day - 11 July 2007! by Fred Tam

Kuala Lumpur Stock index futures: Maintain long/Sell-stop @ 1356.0 OL

July futures closed lower by 14.5 point at 1365.0 on relatively low volume of 4,624 lots.

1.FKLI corrected downwards and fall back into the confines of the Bollinger band.

2.This market is back into a consolidation mode, once again.

3.It is whipsawing, and has failed to break out of this consolidation for the last two months, since May 7.

4.Still, technically we are maintaining longs but place sell-stop to exit longs @ 1356 OL.

5.Do not short as price is still above the lower Bollinger band.

6.We would think about shorting @ 1352 OL.

7.Upside target remains at 1466.

General commentary: We expect a rising Dow and the strong ringgit to boost the KLCI higher, which will in turn lift the FKLI higher.

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 15.96 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.

Fred Tam is the owner of http://www.fredtam.com and http://www.picapital.com.my F1 Trader Online - Know when to enter & exit the markets.

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