FKLI Commentary on 11/06/09

FKLI futures June contract surge 15 point higher to close at 1088.5 as compare to previous trading session with total 6,115 lots traded in the market. FKLI surge up and break new high during trading session as regional indices were recording new high during the sessions.
Technically, FKLI continue to surge high once previous resistance levels at 1078 fails to hold against the buying interest. However, FKLI seems closed on the upper trend line of the rising wedge in the hourly chart. Based on our technical analyst, we suggest that FKLI is likely to test next resistance levels at 1094 and 1110 regions provided support levels at 1073 and 1060 regions were not violated. Despite we expecting FKLI might be trading higher to search for new high, traders who still holding long position were advice to be cautious as open fresh long position would not be advisable as risk rewards ratio shows holding fresh long position would invite greater risk.