Selling pressure on the FKLI tapered yesterday, and the index gained 0.5 pts to close at 1,581.5 pts as the negative momentum failed to follow through, RHB Research said in a note.
It said that the index opened at 1,583 pts, then bounced to test the day’s high of 1,594 pts, before retracing to its closing point.
“The latest session’s low is higher than the previous session’s low, which shows that bearish pressure is easing. For the coming sessions, the index may consolidate sideways before resuming its upside movement,” it said.
RHB said in the event selling pressure picks up again, the index may retreat towards its 50-day SMA line or 1,566.50-pt support. At this stage, we maintain a positive trading bias until the stop-loss is breached.
Traders should remain in the long positions initiated at 1,567.50 pts, or the closing level of 16 Mar. To protect the downside risks, the initial stop-loss is set at 1,566.50 pts. The immediate support remains at 1,566.50 pts (24 Feb’s low), then 1,541 pts or the low of 17 Jan. Meanwhile, the immediate resistance is still at 1,608.50 pts (25 Mar’s high), followed by 1,620 points.
