RHB Research has maintained long positions on KLCI futures.
The FKLI bounced off above the 50-day average line yesterday as it closed 4.50 pts higher at 1,475.50 points. It opened at 1,472 points and whipsawed between the intraday low of 1,464.50 points and intraday high of 1,482 points before retracing from the day’s peak towards the close. The small white body candlestick printed above the 50-day SMA line suggests the buying pressure is building up near the support level and attempting an initial rebound.
This is in line with our earlier expectation that the FKLI will oscillate between the 1,464.50-point support and 1,487.50-point
resistance in the coming sessions. Therefore, it is expected the index to continue hovering between those levels in the coming sessions. Unless the stop-loss level is breached, no change to bullish bias.
Traders should maintain their long positions initiated at the closing level of 30 August, ie 1,510 points. To minimise the trading risks, the initial stop-loss threshold is set at 1,464 points.
The immediate support is now at 1,464.50 points – 24 Aug’s low – and followed by 1,450 points. The first resistance is
pegged at 1,487.50 points – 1 Sep’s high – with the higher resistance at 1,510 points or the close of 30 Aug.
