Let's get ourselves ready for next week's trading opportunity. Alright Let's start off...

FKLI

FKLI generally traded sideways between 1,698 and 1,678 last week. {C}

One glance at the chart, we noticed that the 1,687 support is holding strong. In addition, the chart is forming a series of higher lows. However it is still too early to say that FKLI will have a trend reversal soon. This because there is a resistance that buyers need to overcome, which is the 1,698 level. Hence we will only entertain a trend reversal towards the upside if there is a close above 1,698. First potential uptrend target will be 1,713 while second potential uptrend target is at 1,730, which is middle of Nov previous structure high. However this uptrend is in danger and could be ending soon if sellers bring prices past 1,687. So it will be a good idea to use this line to limit any potential losses. 

In addition, FKLI has a high probability of resuming it's downtrend shall sellers secure a close below 1,687. First downtrend target is at 1,678 while second downtrend target could potentially be at 1,665, which is the Oct previous structure low. As mentioned earlier, FKLI could have an uptrend if buyers secure a close above 1,698. So if you had any sell position, you can consider using the 1,698 as a warning to limit any potential losses on your short positions. 

FM70

FM70 rallied towards the upside, although a bit limited, and hit our first uptrend target of 14,000, as correctly discussed in our last week's FM70 analysis. Prices then remained range bound. However if look towards the left hand side of the chart until 22 of Oct, did you noticed that the market had formed a series of higher lows. Well this is the first clue of a potentially long term uptrend. Next we expect FM70 to had a second round of uptrend once prices close above 14,000. Shall buyers able to do that, we could see FM70 rally towards the 14,372 or even the 14,625 uptrend targets. However a close below 13,751 means this uptrend is ending soon. It will be a good idea to consider using this line to limit any potential losses. 

Besides that, a close below 13,751 could also mean FM70 will start a downtrend soon. Potential downtrend targets will be 13,400 and 13,020 structure support respectively. However a close above 14,000 means the market is in favor of uptrend again. 

FCPO

FCPO starting to finding its bottom as prices currently trading above the 2,024. HOWEVER, this bottom is cancelled out if sellers can secure a close below 2,000 level. Shall this scenario happened, we could then see prices going downwards and retesting the first structure support of 1,950. Once this support been broken thru, we could even see prices creating a yearly low of 1,900. For risk management, traders can consider placing stops around 2,024. 

This is because as long as prices above 2,024, the market is finding its bottom and buyers are putting up a good fight. We may see prices rally towards the 2,100 target or even the 2,145 major resistance target. This analysis is cancelled out if prices close below 2,000 level.  

Alright, that wraps up this week's analysis. If you would like to open a futures trading account my cares, feel free to contact us. 

Trade well my friends! See you again next week!. 

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