FBM KLCI Expected to Trade Range Bound

With concerns and worries about the tighter monetary policy stance of major central banks around the world due to inflationary pressure, Bursa Malaysia is anticipated to trade in range bound this week.

The main index FBM KLCI is expected to move between the 1,465 to 1,475 as the investors’ sentiment will be influenced by cautious mood and directionless regional performance

Technical Analysis on FKLI

RHB Research has continued to maintain short positions on KLCI futures (FKLI).

The correction on the FKLI was extended last Thursday, and the index shed 5 points to close at 1,457.50 points. It opened at 1,462 pts that day, then tested the day’s high of 1,467.50 pts before declining to print the day’s low of 1,457 points before closing in negative territory. Since falling below the 50-day SMA line, the RSI has been trending below the 50% threshold and pointing downwards – indicating that the bears are gaining strength now.

If the momentum stays put in the sessions ahead, the FKLI should retrace towards 1,450 pts, followed by the 1,433-pt level.
It should continue to head south until it can form a bullish reversal candlestick or hits a rejection level. Since the index
undergoing a correction phase, no change to negative bias.

Traders should stick to the short positions initiated at 1,462.50 points or the closing level of 14 September. To mitigate the trading risks, the initial stop-loss threshold is at 1,493.50 points.

The immediate support has been revised to 1,450 points, followed by 1,433 points or the low of 21 July. Conversely, the nearest resistance is now 1,476 points – 8 September’s low – then 1,493.50 points, ie the high of 12 September.

Previous articleOil Rises As Chinese City’s Reopening Offsets Slowdown Concerns
Next articleStock Picks of the Day: REDTone Digital, Velesto Energy

LEAVE A REPLY

Please enter your comment!
Please enter your name here