With technical bullish momentum on the KLCI futures, RHB Research is retaining its “long” positions on this derivative.
The FKLI’s bullish structure remains intact even though the index shed 1.5 points on Friday to close at 1,489.50 points. It opened at 1,489.50 points that day, and trended upwards to print the day’s high of 1,498.50 points. However, it failed to maintain the bullish momentum and closed at 1,489.50 points. Although the closing price is lower than that of the previous session, the day’s low of 1,487 points is higher than previous session’s low of 1,469 points – and this “higher low” shows that the bulls still have a technical advantage. As such, the bullish structure is intact and the bulls should resume the uptrend, while eyeing the 1,500-point level. In the event the index ends up in a consolidation, it may pull back to retest the gap support at 1,488 points and 1,480 points. For now, as the bulls are still in control, the research house is maintaining a positive bias.
Traders should stick to the long positions initiated at 1,450.50 points or the closing level of 21 July. To manage trading
risks, the stop-loss threshold has been set at 1,448 points.
The immediate support is marked at 1,488 points – 10 June’s low – followed by 1,480 points or the high of 13 June. Conversely, the immediate resistance is pegged at 1,525 points – 24 May’s low – then 1,557.50 points or the close of 6 May.
