The research house is maintaining its ‘LONG’ positions on KLCI futures.
The FKLI recouped almost all its intraday losses yesterday to close on a neutral note – settling 2 pts lower at 1,596 points. The index opened slightly lower at 1,595.5 points and fell to the intraday low of 1,588.5 points. It then – towards the end of the session – started to move upwards. It hit the day’s high of 1,597.5 points before retreating slightly below the opening level to close.
The latest neutral candlestick with long lower shadow, above the 1,593.5-point immediate support level, signals that buying momentum above this level remains intact. This, coupled with the “higher high” bullish structure staying intact, and RSI indicator still above the 55% level, indicates that the FKLI will propel towards 1,620 points in the coming sessions. As such, the research house reiterated its stand of maintaining their positive trading bias.
Traders should stay with the long positions initiated at 1,567.50 points, or the closing level of 16 March. To manage downside risks, the initial stop-loss threshold is placed at 1,566.50 points. The immediate support has moved to 1,593.50 points – 17 March’s high – followed by 1,566.50 points, or 24 February’s low. Conversely, the nearest resistance is at 1,620 points, which was 17 February’s high, and then 1,634.50 points, or 12 March 2021’s high.
