The research house initiated ‘LONG’ positions on the KLCI futures as the stop-loss point had been triggered following its bullish momentum.
The FKLI extended its bullish momentum for a second consecutive session last Friday, charting a “higher high” to close at 1,604 points – indicating a 7.5-point gain from Thursday’s session. The index initially started off at 1,596.50 points. After trading between 1,592 points and 1,605 points, it closed at 1,604 points – breaching the 1,603-point resistance. With the renewed momentum, the bulls may continue their upside movement and travel towards the YTD high or 1,620-point resistance. On the downside, the 50-day SMA line is acting as support now. The latest “higher high” price action confirmed the FKLI is posing a bullish setup now. Since the index is breaking past the stop-loss mark, we shift to a positive trading bias.
The research house closed out the ‘SHORT’ positions initiated at 1,578 points – 18 April’s close – after the stop-loss threshold at 1,603 points was breached. Conversely, they initiate ‘LONG’ positions at the closing of 29 April, i.e. 1,604 points. To manage the trading risks, the initial stop-loss level is set at 1,578 points. The immediate support is marked at 1,578 points – 18 April’s low – and followed by 1,543.50 points, i.e. 15 Mar’s low. The immediate resistance is pegged at 1,620 points and followed by 1,635 points.
