FKLI Commentary on 13/01/09

FKLI December futures contract closed 5.5 points lower at 922.5 as compare to previous trading session with total 4952 lots traded in the market. FKLI was traded sideways toward the downside throughout the trading session as regional indices and Dow Jones futures electronic trading.

Technically, FKLI manage to break down from trend line drawn in the hourly chart as we expected. We expect FKLI would continue to trade lower in the coming trading session as a head and shoulder formation was seen in the hourly chart where 921 was seen the neckline provided if resistance levels at 930 and 942.5 were not violated. Traders were advice to hold short position in the coming trading session while being cautious around the support levels at 921 and 903 regions.