RHB Research maintains “long” positions in KLCI futures.
Despite the formation of the Shooting Star, the FKLI struggled to retain its bullish posture on Monday. The benchmark index opened at 1,510.50 points and it rose to test the day’s high of 1,513.50 points. However, the bears pulled it lower in the afternoon to close at 1,507.50 points – printing a candlestick with bearish body. At the latest price action, the session’s low of 1,506 points is higher than the previous breakout point of 1,507 points, so it is deemed the bulls still have a technical advantage. Meanwhile the RSI has fallen off the trendline, indicating that the positive momentum is slowing down. Hence, the index should consolidate sideways in the coming sessions. In the event selling pressure increases, expect the index to test the 1,494-point immediate support. As long as the index stays above the stop-loss point, the research house will hold on to its positive bias.
Traders to stay on long positions initiated at 1,450.50 points, or 21 Jul’s close. To mitigate the trading risks, the stop-loss is set at 1,480 points.
The immediate support is marked at 1,494 pts – 8 Aug’s close – followed by 1,480 pts, or the high of 13 Jun. The immediate resistance is set at 1,516 pts – 12 Aug’s high – followed by 1,525 pts, or the low of 24 May
