FKLI Commentary on 22/01/09

FKLI December contract plunge 14 points lower to close at 878.5 as compare with previous trading session with a total of 5452 lots traded in the market. FKLI was open and traded lower during the trading session due to weak regional indices and Dow Jones futures electronic trading.

Technically, FKLI manage to reach our expect target around 880 levels but lack of immediate rebound after support levels was tested. However, RSI and MACD shows significant Bull divergence in the hourly chart which indicates reversal is nearby. We expect FKLI would trade higher in the coming trading session provided if support levels at 878 and 865 regions were not violated. Traders were advice to hold long position in the coming trading session while being cautious around resistance levels at 890 and 908 regions.