The FBM KLCI opened at 1,402.68 as compared to yesterday’s close at 1,400.36.
At the time of writing, the KLCI oscillates between 1,400.28 – 1,403.17.
Following the performance of Wall Street overnight, KLCI is expected to consolidate or inch up higher today pending for more positive data.
Technical Analysis on KLCI Futures (FKLI)
RHB Research has continued to maintain short positions on KLCI futures.
The FKLI underwent a rebound for the third straight session yesterday, closing 15.5 points higher at 1,402 points – firming up the recent “Bullish Engulfing” pattern while remaining below the 1,418-point stop-loss. It opened weaker at 1,386.5 points and briefly stayed at the day’s low of 1,384 points before rebounding strongly towards the end of the session. It printed the day’s high of 1,405.5 points before closing. This third consecutive bullish candlestick reinforces the bullish engulfing pattern formed last Friday. Despite closing above 1,398 points to negate the “Bearish Breakaway Gap” formed on 11 Oct, the index was still forming a “lower low” and “lower high” bearish structure beneath the 50-day SMA line. Hence, the medium-term downtrend is still intact. From the standpoint of our medium-term outlook, no change to its negative bias.
Traders should remain in the short positions initiated at 1,384.50 points, or the closing level of 12 Oct. To mitigate trading
risks, the stop-loss is set at 1,418 points.
The immediate support is pegged at 1,360.5 points, followed by 1,350 points. On the other hand, the immediate resistance
has risen to 1,418 points or the high of 26 Sep, followed by 1,463 points ie the high of 20 Sep.
