Gold Advances in New York on Demand for Alternative to Weakening Dollar

Jul 15, 2010 - Gold futures rose on speculation that the dollar will weaken further, boosting demand for the precious metal as an alternative asset.

The dollar slid as much as 1.1 percent against a basket of six major currencies and touched a two-month low against the euro. Gold historically has moved inversely to the dollar. The metal reached a record $1,266.50 an ounce on June 21 and rallied to all-time highs in euros, British sterling and Swiss francs as investors sought a haven during Europe’s fiscal crisis.

“Gold is following the euro higher,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “Gold’s historical relationship to the dollar is coming back.”

Gold futures for August delivery increased $1.30, or 0.1 percent, to $1,208.30 on the Comex. The price has gained 10 percent this year.

The euro rose above $1.29 for the first time since May as demand for Spanish government bonds eased concerns that the nation wouldn’t be able to fund its deficit.

Investors who had sold euros and bought dollars and gold as havens during the height of Europe’s debt worries may now be reversing course, analysts said.

‘Love Triangle’

“The love triangle between gold, the dollar, and the euro is playing out,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. “A lot of what you’re seeing is the unwinding of those euro positions. Gold still looks good to hold and won’t slide too much.”

The Federal Reserve Bank of New York’s general economic index and the Philadelphia Fed’s gauge both fell in July to 5.1, reflecting the slowest pace of manufacturing expansion this year. Readings greater than zero signal growth.

The Fed has kept its benchmark interest rate at zero to 0.25 percent since December 2008 to stimulate growth. The European Central Bank’s main rate is 1 percent.

“We remain bullish on gold, although we may soon begin to focus upon gold in dollar terms rather than solely seeing gold in terms of the euro, sterling or even the Swiss franc,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter.

Silver futures for September delivery rose 7.2 cents, or 0.4 percent, to $18.362 an ounce on the Comex.

Platinum futures for October delivery advanced $13.10, or 0.9 percent, to $1,533.70 an ounce on the New York Mercantile Exchange. Palladium futures for September delivery gained $1.40, or 0.3 percent, to $467.20 an ounce, also on the Nymex.

Crude Oil Falls After Reports Raise Concern U.S. Economic Recovery to Slow

Jul 15, 2010 - Crude oil tumbled after government reports bolstered concern that the U.S. economic recovery will slow, reducing fuel consumption.

Oil dipped 0.6 percent after the Federal Reserve said that U.S. factory output fell 0.4 percent in June, the biggest decline in a year. Other reports showed factories pulled back in the New York and Philadelphia regions in July. The major stock indexes dropped at least 1.2 percent before rebounding after oil settled to close little changed.

“There’s nothing good in today’s economic reports that you can point to,” said Michael Fitzpatrick, vice president of energy at MF Global in New York. “Oil is overpriced given where the economy is.”

Crude for August delivery dropped 42 cents to settle at $76.62 a barrel on the New York Mercantile Exchange. The contract dropped as low as $75.33 during the session. The price is up 25 percent from a year ago.

The Dow Jones Industrial Average declined 7.41 points to 10,359.31 at 4:01 p.m. in New York, the first drop in eight days. The Standard & Poor’s 500 Index gained 0.1 percent to 1,096.48 after trading below the previous close most of the day.

Oil in New York has traded in a range of $8.29 for the past month, from $71.09 to $79.38 a barrel. The August contract’s discount to the December contract is $1.83, down from $3.21 on June 18.

“Until we see solid economic growth, prices will stay in this range,” said Chip Hodge, who oversees a $9 billion natural-resource bond portfolio as senior managing director at MFC Global Investment Management in Boston. “The forward curve has come down a lot, which is a sign that people are less optimistic about the economy and demand growth.”

New York Index

The Federal Reserve Bank of New York reported that showed its general economic index fell to 5.1 in July from 19.6 the prior month. The Federal Reserve Bank of Philadelphia’s general economic index declined to 5.1 this month, the lowest level since August 2009, from 8 in June.

Economists monitor the New York and Philadelphia Fed factory reports for clues about the Institute for Supply Management figures on U.S. manufacturing during the month. The July ISM data will be released Aug. 2.

China’s economic growth rate eased to 10.3 percent in the second quarter. The gain in gross domestic product was less than an 11.9 percent increase in January-March from a year earlier. Industrial output rose 13.7 percent, less than all but one of 27 forecasts in a Bloomberg News survey.

“Their economy is clearly decelerating, which has to worry investors,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis.

The U.S. and China, the world’s biggest energy consuming countries, accounted for 32 percent of global oil demand in 2009, according to BP Plc, which publishes its BP Statistical Review of World Energy each June.

OPEC Shipments

The Organization of Petroleum Exporting Countries, supplier of about 40 percent of the world’s oil, will ship 23.6 million barrels a day in the four weeks to July 31, compared with 23.58 million in the month ended July 3, according to tanker tracker Oil Movements. The data exclude Ecuador and Angola.

OPEC’s compliance with production targets slipped in June on higher production from Saudi Arabia and Nigeria. The 11 members bound by quotas increased output by 61,700 barrels a day to 26.86 million, implying compliance of 52 percent, according to the group’s Monthly Oil Market Report today. OPEC completed 54 percent of its promised cuts in May, the data show.

An Energy Department report yesterday showed that stockpiles of gasoline and distillate fuel, a category that includes heating oil and diesel, increased last week as crude oil supplies dropped. Both crude and fuel stockpiles were above the five-year average for the period.

‘A Lot of Crude’

“We still have a lot of crude on hand,” said Kyle Cooper, a managing director at energy consultant IAF Advisors in Houston. “What we need are products such as gasoline, and those supplies increased.”

Gasoline for August delivery slipped 0.58 cent, or 0.3 percent, to settle at $2.0607 a gallon in New York. Heating oil for August delivery declined 1.78 cents, or 0.9 percent, to end the session at $2.0183 a gallon.

Brent crude for August settlement fell 58 cents, or 0.8 percent, to end the session at $76.19 a barrel on the London- based ICE Futures Europe exchange. The August contract expired today. The more actively traded September contract dropped 57 cents, or 0.7 percent, to $76.09.

Oil volume on the Nymex was 588,338 contracts as of 3:09 p.m. in electronic trading in New York. Volume totaled 683,617 contracts yesterday, 8.2 percent below the average of the past three months. Open interest was 1.28 million contracts.

FCPO Daily Commentary for 16th July 2010

FCPO 3rd month Sep futures contract traded RM58 higher to close at RM2439 levels as compare to previous trading sessions with a total of 15,889 lots traded in the market. FCPO price surge higher during trading session as soybean oil and crude oil electronic trading were trading higher while strong export figure was released during trading sessions.
FCPO price opened almost unchanged but soon trading higher once support levels at RM2380 region holding well during trading sessions before price surge higher towards resistance levels at RM2455 regions. Technically, FCPO price seems riding on bullish sentiment during trading were next nearest resistance levels seen at RM2460 and RM2500 regions. However, FCPO price would seen temporary overbought during trading sessions while nearest support level seen at RM2400 and RM2370 regions.

FKLI Daily Commentary for 16th July 2010

FKLI July Futures contract fall 6.5 points lower to close at 1337 levels as compare to previous trading session to with a total of 6,928 lots traded in the market. FKLI plunge lower during trading sessions as regional indices especially Hang Seng Index and ShangHai Index plunge lower during trading sessions.
FKLI traded lower during trading sessions after previous support levels at 1340 fails against selling activity during trading session and found support levels at 1333; 61.8% Fibonacci support levels before begin to rebound towards 1338; 50% Fibonacci resistance levels. Technically, FKLI still favor towards correction phase provided resistance levels at 1343 and 1352.5 were not violated in the coming trading sessions. Support levels were seen at 1327 and 1322 regions. Failure to hold trading price above support levels shall indices further selling pressure to take in place.

Oil Falls After Federal Reserve’s Outlook, Decline in Equities

July 15 (Bloomberg) -- Crude oil declined after the Federal Reserve’s assessment that the economic outlook has “softened” added to concerns a recovery in fuel demand may falter in the U.S., the biggest energy-consuming nation.

Oil fell after most U.S. equities dropped, halting a six- day rally, as a drop in retail sales and minutes from the Fed’s last meeting showed policy makers saw no need to boost economic stimulus even as they trimmed growth forecasts. U.S. crude supplies declined, while gasoline inventories climbed 1.6 million barrels last week, an Energy Department report showed.

“There are a growing number of indicators that point to a slowing U.S. economy,” said David Land, chief market analyst at CMC Markets Ltd. in Sydney. “The Federal Reserve’s revised assessment of the economy and weaker-than-expected retail sales figures put a dampener on things.”

Crude oil for August delivery dropped as much as 48 cents, or 0.6 percent, to $76.56 a barrel in electronic trading on the New York Mercantile Exchange and was at $76.62 at 9:57 a.m. Sydney time. Yesterday, the contract slipped 11 cents to settle at $77.04 after reaching $78.15, the highest intraday price since June 29. Futures have declined 3.5 percent since the start of the year.

Fuel demand tumbled 4 percent to 18.8 million barrels a day, the lowest level since April 23, the Energy Department report showed. It was the biggest one-week decline since March.

Sales at U.S. retailers dropped in June for a second month. Purchases decreased 0.5 percent, more than projected, after declining 1.1 percent in May, Commerce Department figures showed yesterday in Washington.

‘Softening’ Outlook

“The economic outlook had softened somewhat and a number of members saw the risks to the outlook as having shifted to the downside,” minutes released yesterday in Washington of Federal Reserve policy makers’ June meeting showed. “The changes to the outlook were viewed as relatively modest and as not warranting policy accommodation beyond that already in place.”

U.S. crude-oil supplies fell 5.06 million barrels to 353.1 million, the Energy Department said. Stockpiles were forecast to slip 1.5 million barrels, according to a Bloomberg News analyst survey. Refineries operated at 90.5 percent of capacity, the highest level since January 2008.

Inventories have dropped 12 million barrels in three weeks to the lowest level since March 19. It’s the longest string of declines since December.

Stockpiles of distillate fuel, a category that includes heating oil and diesel, increased 2.94 million barrels to 162.6 million, the department said. Inventories were forecast to rise by 1 million barrels.

Brent crude for August settlement increased 12 cents to end the session at $76.77 a barrel on the London-based ICE Futures Europe exchange yesterday. The contract expires today. The more- active September contract slipped 7 cents to $76.66 a barrel.

Gold in N.Y. Retreats After Gaining the Most in Three Weeks

July 14 (Bloomberg) -- Gold fell in New York on sales by some investors after prices gained the most in three weeks.

The metal yesterday climbed 1.2 percent, the most since mid-June. Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, was unchanged yesterday. Gold has increased 11 percent this year.

“Gold is at the top end of its recent trading range and faces technical resistance,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “There is a bit of profit taking.”

Gold futures for August delivery fell $6.50, or 0.5 percent, to $1,207 an ounce on the Comex in New York.

The metal has failed to settle above $1,215 since June 30, an area of resistance, McGhee said. Earlier today, the price touched $1,218.20 before retreating.

A drop below $1,200 is an opportunity to buy, said Tom Pawlicki, an analyst at MF Global Holdings Ltd. in Chicago.

“The $1,200 level seems most favorable for entry,” Pawlicki said. “Low interest rates will continue to suggest that the cost of carry for gold is low, and will allow the metal to compete with Treasuries for investors that need a store of value.”

The Federal Reserve has kept the benchmark U.S. interest rate between zero percent and 0.25 percent since December 2008 to revive the economy.

Gold reached a record $1,266.50 on June 21 and also rallied to all-time highs in euros, U.K. sterling and Swiss francs last month amid Europe’s credit crisis.

Silver futures for September delivery rose 3.3 cents, or 0.2 percent, to $18.29 an ounce on the Comex.

Platinum futures for October delivery declined $14.80, or 1 percent, to $1,520.60 an ounce on the New York Mercantile Exchange.

Palladium futures for September delivery lost $3.35, or 0.7 percent, to $465.80 an ounce, also on Nymex.

FCPO Daily Commentary for 15th July 2010

FCPO 3rd month Sep futures contract traded RM28 higher to close at RM2381 levels as compare to previous trading sessions with a total of 6,063 lots traded in the market. FCPO price was traded higher throughout entire trading session as crude oil and soybean oil were traded higher during overnight and electronic trading.
FCPO price continue trading higher during trading sessions and challenge next resistance levels at 2380 regions; 78.6% Fibonacci resistance levels. Technically, FCPO price possible undergoing larger rebound wave count provided resistance levels at RM2380 and RM2410 regions were not violated in the coming trading sessions. However, FCPO price current nearest support levels seen at RM2356 and RM2325 regions. Failure to FCPO trading price above the support level shall indicates further selling activity.

FKLI Daily Commentary for 15th July 2010

FKLI July Futures contract surge 4.5 points higher to close at 1343.5 levels as compare to previous trading session to with a total of 7,937 lots traded in the market. FKLI opened higher but only trading within range throughout entire trading sessions as regional market and Dow Jones futures electronic trading were traded within range after huge movement upon open for trading.
FKLI surge towards north at 1347.5 but consolidate during trading sessions within range from 1346 to 1341 region throughout entire trading sessions. Technically, FKLI yet to show any sign of reversal where support levels at 1328 and 1324 must not be violated in the coming trading sessions in order for uptrend to remain intact. However, FKLI would encounter some selling pressure around resistance levels at 1352.5 and 1360 regions.

FCPO Daily Commentary for 14th July 2010

FCPO 3rd month Sep futures contract traded RM13 higher to close at RM2353 levels as compare to previous trading sessions with a total of 7,124 lots traded in the market. FCPO traded higher towards entire trading sessions as soybean oil and crude oil electronic trading were traded higher during trading sessions.
FCPO price traded higher during trading sessions in attempt to challenge resistance levels at RM2352; 78.6% Fibonacci resistance levels after found support at RM2325 regions. Technically, FCPO trading is very close to affirm reverse uptrend once resistance levels at RM2366 and RM2375 failed to resistance traded price trading below the resistance levels. However, FCPO price would continue to trade into correction phase provided support levels at RM2525 and RM2510 regions.

FKLI Daily Commentary for 14th July 2010

FKLI July Futures contract surge 10.5 points higher to close at 1339 levels as compare to previous trading session to with a total of 7,358 lots traded in the market. FKLI traded higher in the 2nd trading sessions as regional indices and Dow Jones futures electronic trading were traded higher during trading sessions after found affirmative support levels in the morning sessions.
FKLI break down lower from the symmetric triangle in the hourly price chart to meet support at 1324; 61.8% Fibonacci support levels, in the hourly price chart before surge up higher by end of trading sessions. Technically FKLI seems aggressive in attempt to surge higher to challenge resistance levels at 1342 and 1352.5 regions. However, FKLI crucial support would be seen at 1324 and 1315 regions.

Oil Trades Near Two-Week High as U.S. Equities Advance on Alcoa

July 14 (Bloomberg) -- Crude oil traded near a two-week high in New York after U.S. stocks advanced and on optimism fuel demand will increase amid improved prospects for an economic recovery in the world’s biggest energy consumer.

Oil rose 2.9 percent yesterday as U.S. equities gained for the sixth straight day after Alcoa Inc.’s earnings topped analysts’ estimates. Prices also rose as the International Energy Agency forecast oil demand will grow in 2011. U.S. crude inventories probably fell last week, according to a Bloomberg News survey before a government report today.

“Sentiment has turned positive and commodities and equities are benefiting from that,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “It’s the start of the quarterly earnings season, which has kicked off on a positive note with Alcoa.”

Crude oil for August delivery traded at $77.26 a barrel, up 11 cents, in electronic trading on the New York Mercantile Exchange at 9:23 a.m. Sydney time. Yesterday, the contract rose $2.20 to $77.15, the highest level since June 28. Futures have gained 2.7 percent since the start of the year.

Global oil demand will increase 1.6 percent in 2011 to average 87.8 million barrels a day, the Paris-based IEA said in its first forecast for next year. It left its estimate for 2010 unchanged with a demand growth rate of 2.1 percent to an average 87.8 million barrels a day in a report released yesterday.

U.S. gasoline demand rose 2.1 percent from June 30 to July 6, the Tuesday after the July Fourth holiday, from a similar period last year, according to MasterCard Inc.’s SpendingPulse report yesterday.

Crude Supplies

U.S. crude stockpiles increased 1.74 million barrels to 353.5 million last week, according to a report from the American Petroleum Institute. The Energy Department will probably report that inventories fell 1.5 million barrels, a Bloomberg News survey of analysts shows.

The Petroleum Institute collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.

Profits for S&P 500 companies are projected to have increased 34 percent in the second quarter, according to analysts’ estimates compiled by Bloomberg. Alcoa, the largest aluminum producer, reported net income of $136 million, or 13 cents a share, exceeding the 11-cent average estimate of 17 analysts surveyed by Bloomberg.

Brent crude for August settlement gained $2.28, or 3.1 percent, to $76.65 a barrel on the London-based ICE Futures Europe exchange yesterday.

Soybeans Rise on Bets Rain to Reduce U.S. Midwest-Crop Yields

July 13 (Bloomberg) -- Soybeans rose to an eight-week high on speculation that heavy Midwest rainfall during the past six weeks will reduce yields in the U.S., the world’s largest grower and exporter.

About 65 percent of the crop was rated good or excellent on July 11, down from 66 percent a year earlier and 75 percent in the week ended June 6, the U.S. Department of Agriculture said yesterday. Conditions deteriorated in Iowa, Nebraska, Missouri, Kansas and Ohio. Those states accounted for 44 percent of the 2009 record harvest, USDA data show.

“Soybean crop conditions fell below last year, and that is a positive factor” for prices, said Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago. “The crop is getting smaller.”

Soybean futures for November delivery rose 3.5 cents, or 0.4 percent, to $9.545 a bushel on the Chicago Board of Trade. Earlier, the price reached $9.625, the highest level for the most-active contract since May 14. The oilseed has gained 5.8 percent this month.

U.S. inventories totaled 571 million bushels as of June 1, down 4.2 percent from a year earlier, the government said on June 30. That marked the lowest level since 2004. Reserves will fall to 175 million bushels, 5.4 percent less than June’s forecast, the USDA said last week.

“Soybean supplies are tight,” Grow said. “There is little margin for crop problems this year.”

Soybeans are the second-biggest U.S. crop, valued at $31.8 billion in 2008, government figures show. Corn is the biggest at $48.6 billion.

Crude Oil Trades Near a Three-Day Low After Dollar Strengthens

July 13 (Bloomberg) -- Crude oil traded near a three-day low in New York after the dollar strengthened against the euro, curbing the appeal of commodities as an alternative investment.

Oil fell 1.5 percent yesterday as the dollar advanced amid speculation that tests to demonstrate the resilience of Europe’s banking system will fail to assure investors that the region is recovering from its sovereign-debt crisis.

“The wind has come out of the market’s sails,” said Christopher Bellew, senior broker at Bache Commodities Ltd. “Last week we got to the top of the recent trading range but failed to break through it, so without a boost from the equity market, oil is likely to sag a bit more.”

Crude for August delivery traded at $75.07 a barrel, up 12 cents, in electronic trading on the New York Mercantile Exchange at 8:31 a.m. Sydney time. Yesterday, the contract fell $1.14 to $74.95, the lowest close since July 7. Prices have declined 5.4 percent this year.

The dollar traded at $1.2591 per euro at 8:33 a.m. Sydney time from $1.2596 per euro in New York yesterday, when it strengthened to $1.2551.

U.S. crude oil inventories probably fell 1.35 million barrels in the seven days ended July 9, according to the median estimate of 10 analysts surveyed by Bloomberg News before a government report tomorrow.

Brent crude for August settlement dropped $1.05, or 1.4 percent, to settle at $74.37 a barrel on the London-based ICE Futures Europe exchange yesterday.

FCPO Daily Commentary for 13rd July 2010

FCPO 3rd month Sep futures contract surge RM38 higher to close at RM2338 levels as compare to previous trading sessions with a total of 9,124 lots traded in the market. FCPO price was opened higher as overnight soybean oil and crude oil trading were settle higher despite both were traded lower during electronic trading sessions. Another factor that boost FCPO price towards north is favorable MPOB report that indicates firm demand on CPO production.
FCPO price penetrate previous higher RM2322 region at 50% Fibonacci resistance levels to reach new high at RM2340 regions before end of trading sessions. FCPO price seems well supported above support levels at RM2310 and RM2298 regions before surge higher towards resistance levels at RM2335 and RM2352; both were 61.8% and 78.6% Fibonacci resistance levels. Technically, FCPO price must not be trading above resistance levels at RM2352 and RM2375 regions while support levels seems crucial at RM2310 and RM2280 regions.

FKLI Daily Commentary for 13rd July 2010

FKLI July Futures contract traded unchanged to close at 1328.5 levels as compare to previous trading session to with a total of 4,475 lots traded in the market. FKLI opened and surge higher during early trading sessions but settle lower due to heavy profit taking activity as FKLI has been traded higher for almost 5 days consecutively.
FKLI attempts to penetrate previous resistance levels 1342 fails after being resisted at daily trend line at 1337 regions and settle below resistance levels at 1330.5; 78.6% Fibonacci resistance levels. Technically, FKLI’s correction wave count seems in jeopardy as attempt to search higher resistance levels was persistence. However, resistance levels at 1342 and 1352.5 seen as crucial resistance levels in order for the correction wave count to remain intact. Support levels were seen at 1325 and 1315 regions.

Oil Rises a Fourth Day as China’s Crude Imports Climb to Record

July 12 (Bloomberg) -- Oil rose for a fourth day in New York after China, the world’s second-biggest energy consumer, increased crude imports to a record in June.

Oil gained as China’s net purchases climbed to 22.14 million metric tons, or about 5.39 million barrels a day, according to preliminary data released July 10 by the General Administration of Customs. That beat the previous record of 20.98 million tons in April. U.S. fuel demand rose 3.2 percent in the week ended July 2, the Energy Department said.

“The Chinese trade data was quite strong for crude oil imports,” said David Moore, an analyst at Commonwealth Bank of Australia in Sydney. “U.S. demand has picked up over the year, but the strongest growth is in the developing economies.”

Crude for August delivery rose as much as 26 cents, or 0.3 percent, to $76.35 a barrel in electronic trading on the New York Mercantile Exchange and was at $76.27 at 10:05 a.m. in Sydney. The contract gained 65 cents, or 0.9 percent, to settle at $76.09 on July 9. Futures have declined 3.9 percent since the start of the year.

The global economy will grow 4.6 percent in 2010, the biggest expansion since 2007, the International Monetary Fund said on July 7 in revisions to its World Economic Outlook.

Brent crude for August settlement traded at $75.53 a barrel, up 11 cents, on the London-based ICE Futures Europe exchange at 9:26 a.m. Sydney time. The contract climbed 71 cents, or 1 percent, to settle at $75.42 July 9.

FCPO Daily Commentary for 12th July 2010

FCPO 3rd month Sep futures contract rebound RM11 higher to close at RM2300 levels as compare to previous trading sessions with a total of 10,406 lots traded in the market. FCPO price was opened slightly higher but traded higher during trading sessions as crude oil surge up higher during trading electronic trading while soybean oil was traded within range.
FCPO price penetrate previous higher RM2310 region at 38.2% Fibonacci resistance levels to reach new high at RM2320 regions before start to pull back lower at RM2298; 78.6% Fibonacci support levels. Technically, FCPO price still seen remain trading on rebound wave where next nearest resistance levels seen at RM2335 and RM2352; both are 61.8% and 78.6% Fibonacci resistance respectively. However, FCPO price would be further affirm to trade lower provided support levels at RM2286 and RM2275 fails to hold against the selling pressure.

FKLI Daily Commentary for 12nd July 2010

FKLI July Futures contract traded 12 points higher to close at 1328.5 levels as compare to previous trading session to with a total of 8,370 lots traded in the market. FKLI surge higher during trading sessions as regional indices were trading higher which indirectly encourage FKLI attempt to search for higher resistance levels.
FKLI continue to breach previous resistance levels at 1322 regions to search for higher resistance levels at 1333; 78.6% Fibonacci resistance levels range from 1342 to 1287 regions. Technically, FKLI still seems unclear on the major trading direction. However, it’s very crucial that FKLI must not penetrate resistance levels at 1336 and 1342 in order for FKLI to remain trading as correction wave. Failure to hold trading price below resistance shall indicate market would be riding on bull market. FKLI support levels were seen at 1325 and 1316.5 regions.