RHB Research maintains “long” positions KLCI futures.
The FKLI inched higher last Friday to close at 1,508 points – forming a Shooting Star bearish candlestick. On Friday, the index opened at 1,509 points, then jumped to the session’s high of 1,516 points. However, strong profit-takings in the afternoon saw the index cede most of the intraday gains. The Shooting Star pattern indicates that the bulls turned cautious. If the selling activities continue, the index may retreat towards 1,494 points, followed by 1,480 points. It is expected a strong rebound to happen near the support. Towards the upside, if the index crosses above the immediate resistance of 1,516 points to form a fresh “higher high”, expect a follow-through momentum towards the 1,525-point level. So far, the downside risk is limited since strong support has formed at 1,480 pts. The research house is maintaining a positive bias for now.
Traders should maintain the long positions initiated at 1,450.50 points or 21 Jul’s close. To minimise the trading risks, the
stop-loss is set at 1,480 points.
The immediate support has been changed to 1,494 points – 8 August’s close – followed by 1,480 points or the high of 13 Jun. Towards the upside, the immediate resistance has been revised to 1,516 points – 12 August’s high – followed by 1,525 points.
