The research house maintains “LONG” positions on the futures of KLCI.
Their position is based on the their technical analysis on the movement of the futures as the FKLI underwent mild profit-taking activities last Friday, and retraced by 13.5 points to close at 1,574 pts – which is still above the resistance-turned-support level of 1,566.50 points. It opened at 1,586 points, then traded between 1,591 points and 1,571 points before closing. While the upside momentum has moderated, last Friday’s low of 1,571 points is higher than last Thursday’s low of 1,568.50 points. A “higher low” pattern indicates that selling pressure on Friday was mild, and the bulls are still in control.
Breaching above the immediate resistance of 1,593.50 points would see the index resuming its uptrend, and testing the 1,600-point psychological level. With the RSI moving higher, this suggests that an upside breakout is imminent. As such, RHB Research is maintaining a positive trading bias.
The research house further recommend that traders maintain the long positions initiated at 1,567.50 points or the closing level of 16 March.
To manage trading risks, the initial stop-loss is set at 1,545.50 points. The immediate support remains at 1,566.50 points – 24 February’s low – followed by 1,545.50 points – 11 March’s low. Meanwhile, the immediate resistance has been revised to 1,593.50 points – 17 March’s high – followed by 1,620 points or 17 February’s high
