The FBM KLCI opened at 1,497.40, down 1.03 point from Yesterday’s closing of 1,496.93. Intraday high of 1,497.88 and low of 1,496.13.
The main index is expected to re-test 1,500 point level and hovering around this level until further fresh new leads kick in.
Technical Analysis on KLCI Futures
RHB Research has continued to maintain long positions on KLCI futures.
The rebound on the FKLI was extended yesterday, and the index gained 5 points to close at 1,490 points. It gapped up at the open, at 1,489.50 points. After trading between 1,493.50 points and 1,485 points, it closed in a positive region, and marked a fifth straight positive session. This indicates that strong support has formed at 1,464.50-point level. Riding on strong momentum, the index should test the immediate resistance at the 1,500-point level. Breaching the psychological level will improve market sentiment.
Meanwhile, the 50-day SMA line is trending upwards and lifting the index with it. As the technical signals are upbeat, we will maintain a bullish bias until the stop-loss is triggered.
Traders should stick to the long positions initiated at the closing level of 30 August, i.e. 1,510 points. To mitigate the trading risks, the initial stop-loss threshold is at 1,464 pts.
The immediate support has been revised to 1,476 points – 8 September’s low – followed by 1,464.50 points or the low of 24 August. The immediate resistance is now at 1,500 points, followed by 1,510 points, i.e. the close of 30 August.
