FKLI

FKLI went up for the first 2 trading day of last week before experiencing some sell off. The market then staged a rebound on Friday and settled at 1,730.5.

Taking into account of this price action, we can expect an uptrend is coming once price close above 1,736. In addition, last Thursday's hammer at 1,686 is still valid. When this uptrend scenario is triggered, we could expect FKLI to first retest this 1,750 structure, which was last Wednesday's structure high and opening. If the momentum is strong, FKLI then likely to resume its uptrend towards the 1,765 structure. This 1,765 structure acted as strong support throughout August and September 2018. However, no trade is guaranteed a winning trade. Hence traders need to manage their risks by placing stop losses. A close below 1,726 tells us that the market have no intention of going up. Traders can consider placing stops at 1,726 and below. 

On the other hand, a close below 1,726 is also an indication that the market is reversing towards the downside. Therefore we can look for selling opportunities to trade in-line with this potential downtrend. First downtrend target is last week's low of 1,712. Second downtrend target is the 1,686 structure, if the sellers can take out the 1,712 level. For risk management, stops can be considered at 1,736 and above. This is because a close above 1,736 will negate our downtrend analysis. 

FM70

If you remembered our last week's analysis, we mentioned that a close below 14,000 will motivate the sellers to come into FM70. Prices did remained below 14,000 and we saw that prices almost hitting our first downtrend target of 13,700. Going forward, we expect FM70 to hit 13,700 soon. I would like to further add that if prices close below 13,700, then we could see FM70 had another round of selloff. First downtrend target will be 13,470 while second downtrend target is 13,270. However a close above 13,900 will negate this downtrend analysis. Hence trader can consider placing stops at 13,900 and above.

In my experience, a close above 13,900 is a sign of a coming uptrend. Shall this move materialized, these are the uptrend targets we can aim for. First uptrend target is 14,195 while second uptrend target is 14,366. To limit potential losses, stops can be placed at 13,700 and below. Our uptrend analysis is negated if prices close below this level. 

FCPO

Based on the FCPO chart, there are two potential scenarios that we can capitalized on. Shall prices stay above 2,235 resistance, we could see FCPO resume it's uptrend. In addition, if you look towards the left, you will noticed that the market are trying to create lower highs. Just to be safe, we can look for buying opportunities if prices close above 2,235. Uptrend targets to aim for are 2,265 structure and 2,300 structure, which are the peaks of each up swing. To limit potential losses, stops can be placed at 2,220and below. This is because a close below this level will negate this uptrend analysis.

In contrasts, a close below 2,220 may invite sellers back to the market. Shall this scenario materialized, these are the downtrend targets we can aim for. First downtrend target is 2,180 while second downtrend target is 2,140. Keep in mind, no trade is a guaranteed winning trade. Hence traders can consider placing stops at 2,235 to limit their potential losses. 

Alright, that wraps up this week’s analysis. Feel free to check out how the Intensive Futures Program can help you find high probability setups . Trade well my friends.

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