Kuala Lumpur Stock index futures: Stopped out/S.A./Re-enter long @ 1379 OH



July futures closed lower by 7.5 point at 1366.0 on relatively low volume of 5,527 lots. 1. We were stopped out at 1367.

2. FKLI fell back into the Bollinger band and is now in sideways trend again.

3. It is frustrating, as we have been in a sideways consolidation trend since May 7.

4. We are not shorting because price is still not below the lower Bollinger band.

5. Even so, we are only shorting @ 1332 OL.

6. We are re-entering long @ 1379 OH.

7. Upside target remains at 1466.

General commentary: The FKLI fell back into the Bollinger band channel but as it is still above the lower band, we are not shorting.

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 17.11 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.