The research house has retained its ‘long’ positions on KLCI futures despite mild profit-taking yesterday.
After jumping above the 200-day SMA line, the FKLI’s June futures contract underwent mild profit-taking and settled at 1,556 points. On the first trading session of June, the index gapped up and opened at 1,561 points. After touching the 1,565-point day high, it slipped to the 1,554.50-point day low and closed at 1,556 points. Despite the price action leaving behind a bearish body candlestick, the FKLI still closed above the 200-day SMA line. This is deemed as a mild correction with the bullish structure staying intact. If the profit-taking continues, the 200-day SMA line is expected to provide downside support. On the upside, the bulls will set their sights on the 1,578-point resistance. As of now, the research house retains their bullish bias.
Traders are advised to maintain the ‘long’ positions that initiated at 1,552 points or the close of 31 May. To control the trading risks, the initial stop-loss threshold is fixed at 1,528 points. The immediate support is marked at 1,540 points – 31 May’s low – and followed by 1,528 points, ie the low of 12 May. Conversely, the immediate resistance is still pegged at 1,578 pts – 6 May’s high – and followed by 1,600 points.
