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.