Once again, RHB Research has maintained “long” positions on KLCI futures.
The FKLI extended its consolidation and moved sideways yesterday. The index initially opened at 1,499.50 points and, after trading between 1,499.50 points and 1,492.50 points, it closed at 1,494.50 points – 5 points lesser than the previous session. Despite the negative price action, it is observed that it kept within the range of the 1,507-point resistance and 1,488-point support. As the RSI indicator showed, the FKLI is struggling for momentum now. It will likely continue to move sideways until it breaks out of either boundary. For now, as the the index is trading above the 50-day SMA line – and established a strong position above the 1,488-point support – there might be an upside breakout. Otherwise, breaching the immediate support should see a weakness in the bullish set-up. Pending a breakout movement, the research house is keeping its bullish bias.
Traders are advised to stick with the long positions initiated at 1,450.50 points or 21 Jul’s close. To manage the trading risks, the stop-loss threshold is set at 1,480 points.
The immediate support sticks at 1,488 points – 10 June’s low – and is followed by 1,480 points, ie the high of 13 June. On the upside, the immediate resistance is eyed at 1,507 points – 4 August’s high – and followed by 1,525 points or 24 May’s low.
