FKLI Commentary on 09/06/09

FKLI futures June contract plunge 11 point lower to close at 1065.5 as compare to previous trading session with total 7,346 lots traded in the market. FKLI plunge during the trading session as most of the regional indices and Dow Jones electronic trading plunge despite were opened higher during morning session.

Technically, FKLI forms a bear engulfing formation in the daily chart with significant increment on trading volume. Based on our technical knowledge, daily formation with significant increment on trading volume indicates strong selling signal especially if support levels at 1061.5 and 1051 fails to hold against the selling pressure. We suggest FKLI would continue to trade lower in the coming trading session provided resistance levels at 1076 and 1084 region. Traders were advice to hold short position in the coming trading session while be cautious on rebound signal.