Kuala Lumpur Stock Index Futures Outlook - Forecast for the Day - 26 July 2007!

By Fred Tam

Kuala Lumpur Stock index futures: Maintain Long/Sell-stop @ 1367.0 OL. July futures closed lower by 15.0 point at 1380.0 on relatively high volume of 12,839 lots.

1. Despite the fall, we are maintaining long as sell-stop is not hit. 2. Our sell stop remains at @ 1367.0 OL. 3. Further buy @ 1396 OH. 4. Expect upside target at 1466 to take profits.
General commentary: Technical indicators are still bullish in spite of yesterday’s correction.

FKLI is now AT the upper Bollinger band suggesting that FKLI is still bullish. Any break above 1395.5 is a “further buy”.

Upside Fibonacci target 1466(Revised on June 15)

Downside targets: 1333/1294/1257/1212

Ichimoku chart: (Based on Kumo (clouds) FKLI is still long. Kumo support is at 1206. Ichimoku chart will turn short at 1205 OL) (Updated on June 11, 2007).

Average True Range for KLFE: A.T.R. is 17.71 points for FKLI futures. This implies you need to put a stop above/below this A.T.R. or you can get stopped out due to the volatility factor. We advocate a 1.5 x or 2 x the ATR. We are using a 5 days ATR.

PI DAILY COMMENTS FOR JULY 26, 2007: Local mart resilience in the face of Dow plunge bodes well for KLSE. Expect a rebound/rally. Selective buy/Hold

KUALA LUMPUR JULY 25): Malaysian shares close lower after Wall St's sharp decline
KUALA LUMPUR (XFN-ASIA) – Share prices closed lower Wednesday after Wall Street's sharp pullback overnight sparked selling across the region and provided investors the excuse to take profits after the benchmark composite index hit another record high yesterday. The Kuala Lumpur Composite Index (KLCI) closed down 12.45 points or 0.9 percent at 1,379.73. The FTSE Bursa Malaysia 30-large cap index fell 92.96 points or 1.1 percent to 8,661.06, while the second board index gained 0.07 point or 0.1 percent to 119.58. Losers led gainers 583 to 389, with 213 stocks unchanged and 159 counters untraded. Trading volume was 2.128 billion shares, valued at 3.294 billion ringgit. Despite the Dow Jones Industrial Average Index's sharp fall overnight sparked by renewed concerns over the US' housing loan market, regional markets appeared to be pretty resilient which also helped stabilise local sentiment, said Stephen Soo, TA Securities' technical analyst.

Fred Tam is the owner of http://www.fredtam.com and http://www.picapital.com.my F1 Trader Online - Know when to enter & exit the markets.