FKLI Commentary on 03/06/09

FKLI May futures contract retrace 6.5 point lower to close at 1062 as compare to previous trading session with total 8,142 lots traded in the market. FKLI losses buying power due to regional indices plunge during trading session despite Dow Jones closed firmed during overnight trading session.

Technically, FKLI daily price chart forms at bear engulfing but lack of more traded volume for more confirmation. Our technical knowledge suggests that FKLI already forms head and shoulder in the hourly chart while temporary supports were seen at 1058.5 and 1054 regions. Traders were advice to hold short position in the coming trading session while take precautious around resistance levels at 1073 and 1081 regions.