Trading 4

I was entering a long position for FKLI Aug at 1252 during market closing on last Friday (26/7/10). The long position being initiated is due to break up of my strongest resistance at 1350 together with the rally of regional markets. I hold my bullish view on our market as well as other market which supporting by major good financial report.

Though market was entering into bullish mode, but I don’t expect it able to achieve any higher attempt in short term and I expect it need to take quite some time to reach caused by lack of FDI involvement. According to world investment report 2010, FDI in Malaysia plunged 81% from RM23.47 billion in 2008 to just RM4.43 billion in 2009. The reduction in FDI definitely is not a good sign to the market because the funds are needed to sustain the volatility of market. When FDI is not in, eventually it is quite difficult to maintain some significant movement since our cash market are solely depend on local players only.

Anyway, I set my target profit around 1370-1380 and I will review it from time to time subject to any unexpected matters. On the other hand, I will pay my attention on new support point at 1350 and it shall alert me that bear is trying to take over the rally if market is touching this support point again.