FKLI Commentary on 20/08/09

FKLI Aug Futures contract plunge 12.5 points lower to close at 1151 levels as compare to previous trading session to with a total of 7,330 lots traded in the market. FKLI plunge on 2nd trading session as regional indices lead by Shang Hai Indices and Hang Seng indices.

Technically, FKLI seems fails to penetrate resistance levels at 1166 during morning trading session but gap down and breach previous support levels at 1157 regions. Based on our technical view, our opinion suggests FKLI would encounter some buying interest as market temporary supported around 1144 – 1150 range. However, FKLI still seen riding on a bear rally. Therefore, traders were advice to hold short position around the resistance levels at 1164 and 1173.5 regions.