Riding on renewed momentum, the FKLI extend its upside movement last Friday, and gained 5.50 points to close at 1,608 points, while heading for the 1,608.50-point resistance, RHB Research said.
It opened at 1,601.50 pts and dropped to the session’s low of 1,596 points before the bulls took over and took it to the session’s high of 1,609 points before the close. The positive price action reaffirms that the bulls remain in control, and the index may breach above the immediate threshold.
If the momentum is still intact, the index should retest the YTD high of 1,620 points. On the flip side, if the momentum weakens, the index may undergo a retracement and find support at 1,586.50 pts.
As such, RHB Research said that it makes no change to its positive trading bias. Traders should stick to the long positions initiated at 1,567.50 points, or the close of 16 March.
To minimise the trading risks, the stop-loss is placed at 1575.50 points. The first support is at 1,586.50 points (6 Apr’s low), followed by 1,575.50 points. The immediate resistance is pegged at 1,608.50 pts (25 Mar’s high), followed by 1,620 points or the YTD high recorded on 16 Feb.
