KLCI Futures Prediction 1/3/2012

1/3/2012

WHAT IS FUTURES?
Futures means having the right to buy or sell a financial instrument at

an agreed price at a future date.

The most popular futures products that are being traded in Malaysia are

KLCI Futures(FKLI) & Crude Palm Oil Futures (FCPO)

KLCI is an indicator that comprises the top 30 companies listed in MALAYSIA

Eg: Genting, IOI , CIMB & etc

(For more information you could click on THIS to find out the others listed companies)

The chart below would be my prediction by using TECHNICAL ANALYSIS.

Today the KLCI has gained 3.80 points or 0.24% at a closing of 1573.45.

Now, I would explain about my prediction by using chart analysis.
1) For the 1st indicator, it is called the Exponential Moving Average (EMA).

I'm using the EMA of 10 days and 20 days. As you can see, there is still a big gap in between of EMA 10d & EMA 20d. It indicates that the trend is still an uptrend. However, EMA indicator is a bit too general, we can't solely depend on EMA only. We have to look into other indicators as well, which i will explain it as you scroll down.

2) The 2nd indicator is called Moving Average Convergence Divergence (MACD)
As you can see, the MACD line is about to cross above the SIGNAL line & it is above the zero line. It might indicate a BUY signal.

3) The 3rd Indicator is called Relative Strength Index (RSI)
 The RSI line is now in between of  30 & 70, which means it is neither over bought (Above 70) nor over sold (Below 30)

4) The 4th Indicator is called Stochastic Oscillator
The %D line has just crossed above the Smoothed %D line. Besides that %K line (Dotted Line) is above the %D line & is now in the Over Sold range, this might enhance a strong rebound.

I Predict that the KLCI index will break 1590 in the few coming weeks.

This is just a PREDICTION using technical analysis. No one knows what will happen in future, but as I said, "Investing in Stock Market is a probability game, the more information you have, the higher the chance you will profit from your investment."

If you would like to know more on how to use the indicators & what are those indicators for, you could follow up my Investment category. I will share it bits by bits.

If you would like to get a free charting software, you could go to www.chartnexus.com to download it. I know about ChartNexus through a senior of mine, William Au. He is also a professional investor. You guys could check out his website at http://william-au.com/

it if you like what I have just shared with you all. You could also donate( no worries, you dont have to pay anything, just a click and the company will pay me) to me by clicking the "I'm a NuffNang Blogger button below my LIVE FEEDS.

Regards,
Kejing