The FKLI remained above the 50-day SMA line yesterday, despite retreating 4 pts to close at 1,556.50 pts. It opened at 1,561.50 pts and jumped to the day’s high of 1,569.50 pts. Shortly after, the index reversed its course and registered the day’s low of 1,546 pts, then whipsawed sideways before closing at 1,556.50 pts – marginally above the 50-day SMA line. As shown from the price action, the upside movement was blocked by the 1,566.50-pt resistance. If the FKLI cannot breach the immediate resistance, it may retrace towards the 1,545.50-pt support again. A new direction would be formed if the index moves beyond either the 1,566.50-pt resistance or the 1,545.50-pt support. For now, we believe there is a higher probability of a downside correction, as the RSI is still trending below the 50% threshold. RHB will hold on to its negative trading bias until the stop-loss is triggered.
Trading Stocks
Pantech Group Holdings is poised to climb towards its 52-week high after hitting the immediate resistance of MYR0.655 yesterday as it climbed above the 21-day average line. If it manages to surpass that level, the bulls may bring the stock
towards the next resistance of MYR0.70, followed by MYR0.74 level, ie the highest point since Oct 2017. However, the momentum may lose steam if it falls below the MYR0.60 support – to print a “lower low” bearish structure.
Berjaya Food is set to continue its recent uptrend rebound as it managed to stay above the MYR3.25 resistance-turned support level despite a mild pullback yesterday. The bullish momentum above that level may see the stock climbing towards the recent high of MYR3.52, before possibly printing a new peak of MYR4.00. In the event that it falls below the MYR2.96 support, the positive momentum may fade away, dropping below the 21-day average line.
Matrix Concepts Holdings is set to rebound towards its historical high, as it jumped and breached the immediate resistance of MYR2.34 yesterday, ie above the 21-day average line. If it manages to stay above that level, the stock may push upwards further towards the MYR2.42 all-time high, before printing a new high of MYR2.60. Conversely, falling below the MYR2.28 support should trigger selling pressure, thereby generating a “lower low” bearish pattern.
Astro Malaysia Holdings is in the midst of a rebound amid a sideways consolidation, as it attempted to move past the MYR1.03 resistance yesterday on high trading volume – it retraced mildly during the intraday. If it manages to reclaim that
level and breach above it – forming a “higher high” bullish pattern – it may travel towards the next resistance point of
MYR1.10, followed by the MYR1.13 mark. Conversely, falling below the immediate support of MYR0.98 may trigger the
resumption of a downward correction beneath the 21-day average line.
-RHB Retail Research
