The FKLI resumed its uptrend yesterday as it jumped 21.5 points, settling at 1,491 points and crossing above the 50-day average line, RHB Research said.
It said that the index began the session at 1,469.5 points and propelled northwards towards the end of the session where it hit the day high of 1,492.5 points before the close.
It said that the strong bullish candlestick printed yesterday has reaffirmed its uptrend movement, as it has formed a fresh “higher high” bullish pattern and closed above the “Bearish Breakaway” gap that formed in early June – this is coupled with the RSI strengthening at above 60%.
Hence, RHB expects the FKLI to continue propelling towards the 1,525-point immediate resistance in the coming sessions before surpassing the 200-day average line to hit the next resistance at 1,557.5 points.
It said that it holds on to our bullish bias unless the stop-loss mark is breached. We recommend traders hold on to the long positions initiated at 1,450.50 pts or the closing level of 21 July.
To mitigate the trading risks, the stop-loss threshold is revised higher to 1,448 points from 1,436 points.
The immediate support stays at 1,488 points or 10 Jun’s low and followed by 1,480 points – 25 Jul’s high. The immediate resistance stays at 1,525 points – 24 May’s low – and then 1,557.5 points, which was the high of 20 May.
