RHB Research has maintained “long” positions on KLCI futures.
The FKLI underwent strong profit taking yesterday, as the index retraced 12 points to close lower at 1,489 points. Sentiment became negative yesterday, and the index initially opened lower at 1,498.50 points. After the weak opening, it fell further to the day’s low of 1,482.50 points before the close. Despite strong selling pressure, it managed to bounce off the 1,488-point support. If the negative momentum follows through, the index would breach the immediate support and test the lower support of 1,480 points. Breaching both supports will give rise to strong selling pressure. As long as the index remains above the stop-loss level, it is deemed the recent pullback as a healthy correction while the bullish structure stays intact. Likely, the index will move sideways in the coming sessions. For now, we are sticking to its positive bias.
Traders are recommended to keep the long positions initiated at 1,450.50 points i.e. the closing level of 21 July. To minimise
the trading risks, the stop-loss is set at 1,448 points.
The immediate support remains at 1,488 points – 10 June’s low – followed by 1,480 points, the high of 13 June. Towards the
upside, the immediate resistance is eyed at 1,513 points, with the subsequent resistance at 1,525 points, or the low of 24
May.
