June futures closed lower by 4.5 point at 1370.0 on relatively high volume of 14,996 lots.
1. FKLI lost only 4.5 points and did not hit our sell-stop yesterday.
2. As such we remain long but place sell stop at the new sell-stop of 1366 OL but do not short.
3. We would short only if FKLI closes below 1340, the lower Bollinger band.
General commentary: Look for the Dow’s performance on Tuesday as well as the strength of the ringgit. If the Dow and the ringgit rebound today, we should see a rebound. Hold FKLI.
Upside Fibonacci target 1466(Revised on June 15)
Downside targets: 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 16.25 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.
