RHB Research is still maintaining “long” positions on KLCI futures despite the pull-back yesterday.
The FKLI climbed 2.50 points to close at 1,501 points yesterday, after reclaiming the 1,500-point psychological level. It opened at 1,497.50 points, then traded between 1,503 points and 1,492 points. The index is scaling higher in tandem with the RSI indicator, indicating that positive momentum is gaining traction. Riding on the bullish momentum, the index should climb further to test the immediate resistance of 1,513 points. Meanwhile, note that the 50-day SMA line is turning upwards. If the index undergoes a retracement, the moving average line will provide strong downside support. For now, as it remains in a “higher high” bullish pattern, no change to positive bias.
Traders should hold on to the long positions initiated at 1,450.50 points, or the closing level of 21 July. To mitigate the
downside risks, the stop-loss is fixed at 1,448 points.
The immediate support remains unchanged at 1,488 points – 10 June’s low – followed by 1,480 points, the high of 13 June.
Towards the upside, the immediate resistance has been adjusted to 1,513 points, then 1,525 points, i.e. the low of 24 May
