The FKLI bulls continued to hesitate while trending upwards towards the psychological level of 1,600 points. Yesterday, the index retreated 3 pts to close at 1,595.50 points, RHB Research said.
It opened at 1,599 points, then oscillated between 1,601.50 points and 1,590.50 points before closing. The latest price action saw the 1,600-points become a strong psychological resistance point. The index will remain in consolidation mode until it breaks above the immediate resistance.
Meanwhile, if profit-taking activities happen, the index should retrace towards the 1,575.50-point level. As of now, the bullish structure remains intact and the FKLI should undergo a consolidation before a bullish breakout emerges. Premised on this, we maintain a bullish trading bias.
RHB Research recommends that traders maintain the long positions initiated at 1,567.50 points (16 Mar’s close). To minimise the trading risks, the stop-loss is set at 1575.50 points. The first support remains at 1,575.50 points (29 Mar’s low), followed by 1,566.50 points or the low of 24 Feb. Conversely, the immediate resistance pegged at 1,600 pts round figure, followed by 1,608.50 points or the high of 25 March.
