RHB Research continues to maintain “long” positions on FKLI.
The FKLI charged higher during Tuesday’s session, breaking past the 1,516-point resistance to close higher at 1,518.50 points. The index initially started off on a cautious sentiment, gapping down to open at 1,502.50 points. After the opening, the FKLI progressed higher and tested the 1,521-point session high before the close. The latest bullish price action also negated the Shooting Star pattern that formed on 12 August. The RSI is rounding upwards, indicating that the bullish momentum is picking up pace again. The index should now be attempting to cross above the 1,525-point immediate resistance and 200-day SMA line. Amidst the renewed momentum, no change to positive bias.
Traders should hold on to the long positions initiated at 1,450.50 points or 21 Jul’s close. To minimise the trading risks, the trailing stop is adjusted to 1,494 points from 1,480 points.
The immediate support sticks at 1,494 points – 8 August’s close – and is followed by 1,480 points, ie the high of 13 June. The immediate resistance is revised to 1,525 points – 24 May’s low – while the higher resistance is at 1,550 points.
