Today the FBM KLCI opened at 1,407.39 and it oscillates between 1,405.58 – 1,410.76.
At the time of writing, the barometer index up 4 points or 0.29% at 1,401.89.
The FBM KLCI is expected to hover just above 1,400 point level, and bargain-hunting might emerge as the investors see fit.
Technical Analysis for KLCI Futures (FKLI)
RHB Research has maintained “short’ positions on KLCI futures.
The FKLI resumed its downward movement yesterday, plummeting 19.50 points to settle at 1,394 points. Initially, the index started off the session at 1,413.50 points and climbed to test the day’s high of 1,416.50 points. However, tracking regional peers, the momentum reversed, causing the index to hit the day’s low of 1,393.50 points before closing in negative territory. The latest “lower high” with “lower low” candlestick reaffirms that the bears are still in control, having dominated the session.
As the negative momentum is getting stronger – evidenced by the RSI pointing south – it is expected the index to correct towards 1,375 points, followed by the 1,352.50-point level. The correction will continue until the index is able to form an interim base, or a bullish reversal pattern. With the bearish setup remaining intact, the research house is keeping the negative bias.
Traders are advised to retain the short positions initiated at 1,462.50 points, or the closing level of 14 September. To mitigate the trading risks, the stop-loss is revised to 1,443 points from 1,493.50 points.
The immediate support is adjusted to 1,375 points while the lower support is marked at 1,352.50 points i.e. the low of 22 April Meanwhile, the immediate resistance has been changed to 1,443 points – 22 September’s high – followed by 1,463 points, or the high of 20 September.
