Take note, this will be a very short futures market trading week because on Thursday 31st Aug, we will be celebrating our 60th Independence Day and on Friday 1st Sep, it is Hari Raya Haji. Happy Merdeka to all of us and also Selamat Hari Raya Haji to our Muslim friends. So the markets will going to be open on Monday until Wednesday, as a result we are expecting low liquidity/trading volume in our local futures market. But it does not mean there are not trading opportunities. As usual we traders have to prepared for any opportunities the markets throw at us.

If you noticed FKLI had been on a sideways trend for a quite sometime now. 1..2..3...11 candles that traded between the 1,767 support and 1,775 resistance zone. Is 1,767 a strong support? Look left, back in time, yes...1,767 is a strong support zone and currently buyers are also at this same level supporting the index. Now, you may ask...is this the right time to accumulate longs? Well, based on my experience and from the chart, now is not the best time. This is because 1,775 is a strong resistance and that's where the sellers are converging at.

Hence, the professional way of trading FKLI right now is this. We will be looking for buying opportunities when the market eventually breaks above 1,775 PLUS forming higher high and higher low + prices above EMA13. This is the safest because when prices form these criteria, this means the sellers could be at its weakest. Uptrend targets will be 1,780 and 1,800. Risk management is 1,767.

On the other hand, FKLI will trigger short selling opportunities when market eventually breaks below 1,767 and prices below EMA13. This means the buyers unable to defend that 1,767 and it will be very easy for sellers to push the market lower to either 1,760 or 1,750. Risk management is at 1,775.

As correctly anticipated in our last week's analysis, FCPO did had an uptrend and hit our second target of 2,750. On friday the market then closed at 2,751, which is right above the 2,750 support zone. We are grateful to had a good trade when it triggered our buy signal. Going forward, FCPO likely to resume uptrend as long as prices above 2,750, prices forming higher lows and highs. For added confluence, you can ensure that prices also above the EMA13. Uptrend targets will be 2,800 and 2,850. 

On the other hand, the buyers are defeated and not in control of the market if there is a candle close below 2,750. When this event happen, be prepared to look for short selling opportunities. First downtrend target is 2,700 and second downtrend target at 2,650. This simple if, then process is how I approached my FKLI & FCPO and Forex trading. It had certainty helped me to removed any blind biased on the market, it made the flexible and can easily adapt to the ever changing market conditions. Thus I can easily capture any opportunities the markets present to us. I highly encourage you to back test and paper trade this if, then technique. It believe it will greatly improve your trading.