RHB Research is retaining its “long” positions on KLCI futures
The FKLI recouped 5.5 points from the previous bearish session and closed higher at 1,499.50 points yesterday. It opened at 1,496 points, then traded between 1,494.50 points and 1,505 points before closing – charting a “higher low” bullish pattern. However, the index closed the session near the day’s low, and left a long upper shadow – indicating that the bulls are taking a breather now. As such, the index is likely resort to a sideways movement for the coming sessions. It may pull back lower towards the 1,488-pt support. Note that the RSI has crossed below the trendline, indicating that the momentum is softening now. The FKLI needs to break past the 1,507-pt resistance to form a fresh “higher high” to resume its uptrend. During this consolidation phase, the research house is maintaining a bullish bias.
Traders are advised to remain in the long positions initiated at 1,450.50 points (21 July’s close). To mitigate the trading risks, the stop-loss is at 1,480 points.
The immediate support is still at 1,488 points – 10 June’s low – followed by 1,480 points or the high of 13 June. Towards the
upside, the immediate resistance is now at 1,507 points – 4 August’s high – and followed by 1,525 points or the low of 24 May.
