FKLI Commentary on 29/10/09

FKLI Oct Futures contract fall 8.5 points lower to close at 1245.5 levels as compare to previous trading session to with a total of 7,900 lots traded in the market. FKLI was traded lower as regional indices plunge during trading session despite Dow Jones overnight and electronic trading were traded firm during trading sessions.

Technically, FKLI plunge after 4 hours consolidate around 50% of Fibonacci resistance levels at 1256.5 regions. Based on our technical view, our opinion suggests FKLI would encounter great buying interest around support levels 1242 and 1233.5 regions. Correction would go further only provided support levels were not able to hold against the selling pressure. Traders were advice to hold short once support levels were breach during trading sessions. Resistance levels were seen at 1253 and 1265 regions.