Wednesday, October 12, 2011

20111012 1744 FKLI EOD Daily Chart Study.

FKLI closed : 1438.5, changed : +33 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer having exposure.
Support : 1425, 1420, 1400, 1395 level.
Resistance : 1440, 1445, 1458, 1470 level.
Comment :
FKLI rallied closed recorded huge gains with better volume transacted doing 10 points premium compare to cash market that also closed recorded significant gains. Overnight U.S. markets closed mixed and Asia markets traded mostly higher while European markets currently trading in positive territory.
Speculation on China will boost support for the equity market after valuations dropped to record-low levels resulted Asia and European markets to surge higher triggering short covering activities.
Daily chart formed a huge wide range up bar candle closed little above upper Bollinger band level after market opened little lower, climb upwards all the day towards the end with small intervals retracement to closed near the high of the day.
Chart reading turned to suggesting a side way range bound market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

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