FBM KLCI Futures – Sell from 1,797 to 1,877

Technical Ratings
Support: 1,767.5 – 1,795.0   Resistance: 1,797.0 - 1,877.0
RSI: 48.29-level. Signal line fell.      Stochastic: 49.01-level. Stochastic sell signal emerged.
MACD: +10.4. MACD sell signal. MA: Price bars are between the 18 and 40 WMA. Daily down-trend, neutral weekly trend but monthly uptrend

Strategy: The futures market tumbled for the week to settle at 1,797.0 for the Mar 2014 contract, closing at a large  8.12-point discount to the FBM KLCI. Market action was very negative as the contract fell on some heavy liquidation activities, losing 36.5 points WoW. The KLCIF made key swings at 1,834.5 (high), 1,721.5 (low), 1,824.0 (high) and 1,653.0 (low). It
then rose to the 31 Dec 2013 all-time high of 1,877.0. The KLCIF then made a weekly Bullish Engulfing low 1,767.50 on 7 Feb 2014. Sell on rallies to the stipulated resistance areas above. A weaker tone for the KLCIF would persist this week.

by Maybank IB