The FBM KLCI opened at 1,424.75 on Thursday morning. The main index oscillates between 1,423.16 – 1,425.20 at the point of writing.
Technical Analysis on KLCI Futures
With the bullish momentum shown by KLCI yesterday, trailing stop triggered; RHB Research has initiated long positions on KLCI futures.
The FKLI printed a fourth consecutive positive rebound yesterday, inching 8.5 points higher to settle at 1,421 points – crossing above the 1,418-point immediate resistance. The index opened neutral at 1,412.50 points and gradually climbed higher throughout the session to hit 1,425.50 points before retracing moderately towards the close. The fourth consecutive bullish candlestick crossing above the immediate resistance suggests the buying interest is getting more imminent and is expected to follow through in the coming sessions, as it also successfully negated the recent “Bearish Marubozu” candlestick. Hence, it is seen the short-term bullish bias driving the FKLI towards the 1,443-point next resistance. Nevertheless, the medium-term downwards movement remains, as the index still trades below the 50-day SMA line. Since the trailing-stop level is breached, the research house has shifted to a positive bias.
The research house has closed out its short positions – initiated at 1,462.50 points or 14 September’s closing level – after the trailing-stop mark at 1,418 points was triggered. Conversely, we initiate long positions at the closing level of 5 October, ie 1,421 points. To manage trading risks, the initial stop-loss threshold is set at 1,388 points, which was 30 September’s low.
The immediate support is at 1,418 points – 26 September’s high – and followed by 1,388 points or 30 Sep’s low. Conversely, the immediate resistance is at 1,443 points – 22 September’s high – and followed by 1,474 points, i.e. the high of 14 September
