FKLI Daily Commentary for 7th July 2010

FKLI July Futures contract traded 18 points higher to close at 1311.5 levels as compare to previous trading session to with a total of 9,704 lots traded in the market. FKLI opened lower as Dow Jones electronic trading plunged during early morning sessions but soon FKLI trading higher and settle highest as most of the regional indices and Dow Jones futures electronic trading recovered from losses during trading sessions.
FKLI penetrate previous resistance levels at 1296 regions during trading session and continue to surge up higher; indicates FKLI rebound larger wave count, towards 50% Fibonacci resistance levels at 1312.5 regions. Technically, FKLI seems undergoing larger wave 4 count where nearest seen at 1313, 1318 and 1326; all at 50%, 61.8% and 78.6% Fibonacci resistance levels. Able to hold FKLI trading price below the resistance levels shall lead to assumption for further south trading where nearest support seen at 1307.5 and 1302.

Crude Oil Rises as Investors Buy After Five Days of Decline

July 5 (Bloomberg) -- Crude oil rose for the first time in six days in New York as investors took the view its biggest weekly drop in eight made the commodity attractive to buy.

Oil climbed as much as 0.6 percent to snap a five-day decline. Crude dropped 8.5 percent in the week ended July 2, the biggest since the week ended May 7. There will be no floor trading on the Nymex today because of the U.S. Independence Day holiday.

“The outlook for growth around the world is certainly not as optimistic as it was a few months ago,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “There will be the longer-term participants in the market who are viewing this decline in price as a good time to get long.”

Crude oil for August delivery gained as much as 43 cents to $72.57 a barrel in electronic trading on the New York Mercantile Exchange. It was at $72.26 a barrel at 9:28 a.m. Sydney time. The contract fell 81 cents, or 1.1 percent, to $72.14 on July 2. Prices have declined 8.9 percent since the start of the year.

Oil dropped for a fifth day on July 2 after the Labor Department said payrolls decreased by 125,000 last month as the government cut temporary census workers. The 1.4 percent reduction in May bookings with manufacturers was the biggest since March 2009, the Commerce Department said. Economists in a Bloomberg News survey projected a 0.5 percent drop.

Brent crude oil for August settlement traded at $71.82 a barrel, up 17 cents, on the ICE Futures Europe exchange in London at 9:27 a.m. Sydney time. The contract fell 69 cents, or 1 percent, to $71.65 on July 2.