Since the support level remains strong for KLCI futures, RHB Research has maintained “long” positions on this derivatives.
The FKLI underwent mild profit-taking last Friday, as it dropped by 5.5 points to close at 1,499.50 points. It opened at 1,505 points, and traded between the 1,505 points and 1,497 points before closing. Despite closing lower than the previous session, latest session’s low of 1,497 points is higher than previous session’s low of 1,490.50 points – the “higher low” indicates that the bulls still have a technical advantage. In the event the selling activities are extended, the index may retrace lower to test the support near the 1,488-point level. Breaching the support should lead to a deeper correction towards the 50-day SMA line. For now, since the support remains intact, the index is still firmly on an uptrend – so the research house will keep to a bullish bias until the stop-loss is breached.
Traders are advised to maintain the long positions initiated at 1,450.50 points, or the closing level of 21 July. To protect the
downside risks, the stop-loss has been revised to 1,480 from 1,448 points.
The immediate support remains at 1,488 points – 10 June’s low – followed by 1,480 points which was the high of 13 June.
Towards the upside, the immediate resistance is at 1,513 points, followed by 1,525 points or the low of 24 May.
