The FKLI failed to extend the upside movement on Monday and retraced 1 pt to close at 1,598.50 pts. It opened on positive sentiment, at 1,599.50 pts, and rose to the day’s high of 1,602.50 pts, RHB Research said in a note
After whipsawing sideways, the index closed at 1,598.50 pts – below the opening price. The bearish candlestick indicates that the index is facing selling pressure near the 1,600-pt psychological level. The FKLI may retrace lower before it makes a fresh move northwards.
RHB Research said that if it continues to trade above the 1,575.50-pt support, we deem the bullish structure as intact. “As such, we will maintain our bullish trading bias. Traders should hold on to the long positions initiated at 1,567.50 pts (16 Mar’s close),” RHB said.
To mitigate the trading risks, RHB said that the stop-loss is fixed at 1575.50 pts. The first support is marked at 1,575.50 pts (29 Mar’s low), followed by 1,566.50 pts or the low of 24 Feb. On the upside, the immediate resistance is eyed at 1,608.50 pts (25 Mar’s high), followed by 1,620 pts.
