What's for the coming week for both markets?

Both markets FCPO and FKLI on the long run is still on the bullish side. It all depends on how you strategize your trades for this month. It's always known that the december month is tough because of thin volume which allows the market to be easily volatile. No matter what it is, December in every year is always the toughest month as it is always more volatile than other months. Sideways range can be either tight or in a big range moving drastically from a high to a low. However, FCPO has dropped below 2600 and it seemed to be turning to the bears. Anyhow, let's start with FKLI now.


FKLI

It had been a bullish week for FKLI and analysts had been saying that KLCI will continue to reach higher heights. But, i'm not too sure about what they mentioned. Sometimes these news are "bought" to paint a pretty picture. Last Friday (20th Dec 2013), there was quite a drop from the new all time high on 19th Dec 2013. FKLI still is showing a bearish divergence between price and MACD-H. Immediate supports for FKLI would be 1828, 1814 and 1805. Breaching and closing below that would result for sellers to return. Last Friday's candle (20th Dec 2013) seemed to nullify most of the gains which started from 9th Dec 2013. Stochastics have crossed down from its resistance while MACD-H is shallowing down but still on the positivie side and MACD lines are seemed to be preparing to cross down. Any further downward movement should result MACD lines to cross. Not forgetting last Friday's candle had attracted a bigger volume on the down movement. This could spell for a turn of trend. 

FCPO

It had been a mixed movement for FCPO as sentiments are mixed. With exports down and worries about increasing in stock have hampered prices on the week before last from 10th Dec 2013. It was a typical "sell on rumour, buy on news" move. Prices had been volatile and it had beein the range of 2542 and 2600 for the entire week. The strengthening of USD had been a very strong factor that halted the FCPO drop and turned positive in the last two days. Nevertheless, on the long run FCPO is still on a bullish side but could be a turning point too as prices are below 12EMA and 22EMA and hovering around 32EMA. There is a candlestick that could mark that there would be a temporary rise in prices (marked in red box) and has shown that on last Thursday (19th Dec 2013) and Friday (20th Dec 2013). Stochastics also showing a slight cross up from stochastic support of 10 which could lift prices higher. MACD lines are still crossed down but currently leveling  a little which could return back to its signal line before making any further movements. Moreover, with strong USD and the nearing of the Chinese New Year could spur stronger imports from China which in turn could improve export data and reduce CPO stocks. Hence, the temporary rise. 2600 remains as the strong resistance while 2542 remains as the support. Breaching and closing above any of these levels will send prices up to 2620 or 2520 respectively. There was a higher volume on Friday's rise which could continue for this week. However, all eyes are on 1-25 Dec export data which will be released on 26th Dec 2013 as 25th Dec 2013 is Christmas. However, knowing the behavior of FCPO for that day would be better as there are mixed sentiments which could make FCPO really sideways and volatile. As it has breached 2600 previously, it somehow still is advisable to take short positions rather than long. Hence, it's best to plan out a strategy for this as it could go either way for now. 

Personal View:
FKLI: continue to buy on dips. however if market behaviors show weaknesses, take intraday shorts

FCPO: short term longs and watch for closes support and resistances.

Supports and Resistances broken, and both markets are going the opposite way

It's been quite a run for both markets. However, FKLI seems to be parading upwards, being at the last month of the year, window dressing activities are most likely to happen. True enough it pushed the KLCI index to a new fresh high of 1847 and FKLI to 1843. However, there was a slight retracement after the recent break of the historical resistance and have set a new historical high due to external factors of where the US Feds on stimulus tapering. FCPO on the other hand had a twist of fate after a strong bullish movement on lower stocks, drop on Ringgit and also the raining season, had took a sharp drop after 2 weeks of range movements. Due to a drop in exports making stocks of CPO to rise. In addition to soy oil that has not been performing well also weighed down CPO as they compete for demands at the same regions.


FKLI

FKLI still shows that the uptrend may still be in tact. Candlesticks are all above the moving averages althought there was a drop on 12th Dec to normalcy of the moving average. However, FKLI is still trading on top of the trend line which shows on a long term, the movement is still upwards with small retracements. MACD lines and MACD-H are on the positive side and has not yet crossed down. Nevertheless, stochastics shows a short cross down from it's 90 resistance. Immediate supports would be 1827 and immediate resistances is 1834. This is for daily trades. Depending on how it opens on Monday, as of a longer term movement, it's best to take a long position on a longer term.

FCPO

FCPO on the other hand took a strong beating down on Friday, 13th Dec 2013. Call it Friday the 13th but it was a field day to short. Breaking crucial supports of 2625 on 12th Dec 2013 and 2600 on 13th Dec 2013 had sent FCPO on a bearish movement and closed at 2561. Immediate supports are at 2543 and the stronger support would be at 2500-2504. A big gap down shows that sellers have way overcome the buyers and they are currently in control now leaving an inverted hammer. The first sign of weakness was in 22nd Nov 2013 where there was a Dark Cloud Cover on the candlestick pattern which sent FCPO to trade on a range of 2600-2692. Opening below 2600 on Friday 13th Dec 2013 had showed that the bulls have lost their power. MACD-H and MACD Lines also are showing strong downward movements where MACD-H ticks lower into the negative zone while the MACD lines crossed down and spreading further apart. Stochastics had shown weakness starting from 9th Dec 2013 and 10th Dec 2013 where it has crossed downwards. With news of lower exports and higher CPO stocks, this could end the bullish movement in FCPO. Having said that, its still best to see how it opens on Monday to be sure of any movement but as for now, it seems that the sellers are ready to take over after a long term of bulls had been done.

Personal View:
FKLI: Buy on weakness
FCPO: Sell on strength