FKLI Commentary on 05/06/09

FKLI May futures contract surge 14 point higher to close at 1068 as compare to previous trading session with total 6,328 lots traded in the market. FKLI surge up during trading session despite Dow Jones closed weak on overnight trading as most of regional indices bounce up after been plunge for 2 consecutive days.

Technically, FKLI seems holding well against the selling pressure as still seen well support above the lower trend line in the hourly chart. However, FKLI seems closed below the upper trend line upon closing. Based on our technical knowledge, we suggest the FKLI would continue riding on a correction wave provided resistance levels at 1073 and 1081 were not violated. Traders were advice to hold short position in the coming trading session while be extra cautious around support levels at 1054 and 1033.5 regions