FBM KLCI opened at 1,435.39 as compared to yesterday’s close at 1,437.72.
At the time of writing, the main index was down 3.22 points or -0.22% at 1,434.50. It oscillated between 1,433.26 – 1,436.85.
Technical Analysis on KLCI Futures
Stop-loss point triggered; RHB Research has initiated long positions on KLCI futures.
The FKLI persisted with its bullish momentum for a fifth consecutive session yesterday, surpassing the 1,418-point resistance. It settled 21.50 points stronger at 1,436.50. The index opened neutral at 1,413 points and briefly touched the 1,410.50-point low before jumping northwards towards the end of the session. It closed at the intraday high at 1,436.50 points. The “White Marubozu” bullish candlestick printed yesterday marked the fifth consecutive positive momentum since the bullish engulfing pattern formed last Friday. Riding on the bullish momentum, the research house expects the FKLI to continue trending higher towards the 1,463-point resistance in the short term.
The medium-term uptrend bias may be seen if it manages to surpass above that immediate resistance level, which is also above the 50-day average line. Since the stop-loss point is triggered, RHB Research shifts to a positive trading bias. RHB Research closed out its short positions initiated at 1,384.50 points or the closing level of 12 Oct – this was after the stop-loss level at 1,418 points was triggered. Conversely, we initiate long positions at the closing mark of 20 Oct at 1,436.50 points. To mitigate trading risks, the stop-loss threshold is set at 1,360.50 points.
The immediate support is revised to 1,418 points or the high of 26 Sep, followed by 1,396 points. Conversely, the immediate
resistance has risen to 1,463 points – the high of 20 Sep – and followed by 1,493.50 points, ie 12 Sep’s high.
