Another hectic opening with big swings on FKLI today.
Price staged a technical rebound after opening at 1,623, near previous close, zooming its way up before hitting resistance at 1,634.
The gains quickly vanished into thin air, with price free falling back to opening level, then furiously down to 1,601 low, together with gapping down underlying KLCI.
Support did came in at 1,610-15 region, as price then swiftly recover back above it & is well supported on it throughout the day, consolidating within 1,615-24.5 tight range.
Earlier low of 1,601 was simply caused by massive stops triggering, I believe.
One important point to note is that, yesterday's low of 1,624.5 was hindering the rebound from 1,601 throughout the whole session, without much challenge.
And the close at 1,621, below yesterday's low, further accentuates the weakness on FKLI.
I believe the bears are still in control for the moment, we still need to watch if the crucial 1,615 & psychological 1,600 support levels shall hold tomorrow.
If those levels breached, we are looking at serious reversal of previous rally from 1,590, rather than just a sharp correction to the Dec'12 steep rally.
The three coming public holidays, segmenting the remaining two trading weeks of Jan'13, might also have a slight bearish influence on the market.
Price took a lift from gapping up SoyOil price, gapped higher at open & breached the 2,440 strong resistance in a breeze.
Bullish SoyOil price outlook, coupled with strong open & a higher high after breaching 2,440 level, all tells of the Bull's glorious victory from the past week tight tussle.
I'm totally thankful that market was pretty generous today, giving me ample time to adapt to the new-found bullishness on CPO, re-plan my trades, & still managed to board the train in time.
The train then gave a good ride up, past another resistance at 2,470 gently, before closing near high at 2,466.
A perfect bullish day, indeed.
Crucial levels to watch ahead will be at 2,500-2,520 region, & the 2,600 previous high.