The FKLI gained 13.50 points yesterday to close at 1,450.50 points – breaching both resistance levels of 1,437 points and 1,450 points, RHB Research said
It opened at 1,436 points. After recording the day’s low of 1.433 points, the index trended upwards throughout the rest of the session and printed the session’s high of 1,451.50 points before closing.
It said that the latest session saw the index recording a fresh “higher high” bullish pattern while breaching the strong resistance. Amidst strong trading momentum, expect a follow-through price action to test 1,462 points, followed by the 1,480-point resistance.
It said that If traders take profit, RHB believes 1,426 points would provide an immediate support point. Since the bulls are taking the lead now with strong momentum, we change our bias to a positive one.
RHB said that it would close out the short positions initiated at 1,524.50 pts (7 Jun’s close) as the trailing stop of 1,437 pts has been breached. Conversely, traders can initiate a long positions at the closing level of 21 July or 1,450.50 points.
To mitigate the trading risks, the initial stop-loss is set at 1,415 points. “The immediate support has been revised to 1,426 points – 20 Jul’s low – and followed by 1,415 points. Towards the upside, the initial resistance is at 1,462 points – 16 Jun’s close – then 1,480 points.
