‘Long’ positions being maintained by RHB Research on KLCI futures.
After Tuesday’s sharp pullback, the FKLI bounced off positively yesterday, adding 7.5 points to settle at 1,469.5 points. The index began the session at 1,463 points and touched the 1,458-point low before moving sideways until the late evening session. It then climbed to the 1,474-point high before retracing mildly at the close. The latest positive price action – following the previous session’s pullback – indicates that the index is in the process of consolidating sideways near the 50-day average line, with the short-term upward movement remaining intact. Hence, it is expected the FKLI to re-test the 1,480-point immediate resistance in the coming sessions, before surpassing it to print another “higher high” bullish pattern – which then signals a medium-term bullish bias, as it would have breached above the 50-day average line. This is supported by the improving RSI towards the 56% level. No change to bullish bias unless the stop-loss mark is breached.
Traders should hold on to the long positions initiated at 1,450.50 points or the closing level of 21 July. To mitigate
the trading risks, the stop-loss threshold is placed at 1,436 points. The immediate support stays at 1,448 points – 22 July’s low – followed by 1,436 points, or 4 July’s
