RHB Research continues to maintain “long” positions on KLCI futures.
The FKLI rose higher yesterday and closed at 1,506.50 points – attempting to cross above the 1,507-point immediate resistance. The index began the session at 1,499.50 points. It then experienced strong buying pressure, climbing higher to test the 1,508.50-point session high before the close. Despite not yet being able to break out from the immediate resistance, the FKLI managed to chart a “higher low” pattern. This signal affirms that sentiment is becoming risk-on, and it is expected a follow-though price action in the coming sessions. In the event a bullish breakout happens, the index should move towards the 1,525-point resistance. On the downside, 1,488 points and 1,480 points remain as supports. At this stage, the upside risk is still there – hence, the research house is sticking to a bullish bias.
Traders are advised to hold on to the long positions initiated at 1,450.50 points or 21 July’s close. To mitigate the trading risks, the stop-loss threshold is placed at 1,480 points.
The immediate support stays at 1,488 points – 10 June’s low – and is followed by 1,480 points, which was the high of 13 June. Conversely, the immediate resistance stays at 1,507 points – 4 August’s high – and followed by 1,525 points, ie 24 May’s low.
