RHB Research has once again maintained long positions on KLCI futures.
The FKLI underwent selling pressure for the second consecutive session yesterday, and it shed 5.5 points to close at 1,494 points. It opened at 1,500 points, then climbed to test the day’s high of 1,504.50 points before retraces in the afternoon towards the day’s low of 1,491 points. The bearish candlestick shows that the bears had the upper hand yesterday. However, we believe 1,488 points and 1,480 points would be strong support points, and the bulls should not concede so easily at these thresholds. Expect buying activities to emerge near the downside support. In the event the selling pressure is extended and the FKLI breaches below the support, this would open the door to a deeper correction. For now, the research house is still holding on to a bullish bias until the stop-loss is triggered.
We recommend that traders maintain the long positions initiated at 1,450.50 pts, or the closing level of 21 Jul. To manage the trading risks, the stop-loss is set at 1,480 pts.
The immediate support remains at 1,488 points – 10 Jun’s low – followed by 1,480 points or the high of 13 June. Towards the upside, the immediate resistance is pegged at 1,513 points, followed by 1,525 points or the low of 24 May
