KLCI futures is seen as riding on positive momentum now hence, RHB Research has revised its call on KLCI futures – “long” positions.
The FKLI rose higher for a fourth consecutive session, surging 11 points on Monday to settle at 1,477.50 points – eyeing to fill the Bearish Breakaway Gap. The index began the session at 1,467.50 points. Initially, it faced strong profit-taking and fell to the 1,457-point day low. The bulls then seized the intraday low, lifting it higher in the afternoon – it touched the 1,480-point day high before the close. The latest price action affirmed that the bulls are in control now. Riding on the renewed momentum, the FKLI is recovering from the losses incurred in June. Breaking past the Breakaway Gap will attract further buying interest that can lift it higher. Meanwhile, if the bears take profits near the 50-day SMA line, the index may retrace towards 1,448 points, followed by 1,436 points. For now, the RSI is trending above 50%, indicating that the bullish momentum is still in play. Hence, no change to bullish bias.
Traders should keep the long positions initiated at 1,450.50 points or the closing level of 21 July. To manage the trading risks, the stop-loss threshold is set at 1,436 points.
The immediate support is marked at 1,448 points – 22 July’s low – and followed by 1,436 points, ie the low of 4 July.
Conversely, the immediate resistance is pegged at 1,480 points – 13 June’s high – and then 1,488 points, which was the low
of 10 June
