The FBM KLCI opened at 1,449.14 as compared to last Friday’s closing at 1,446.42.
At the time of writing, the main index was at 1,448.94, gained 2.52 points or 0.17% and oscillated the day-range of 1,449.14 – 1,454.06.
Analysts hold the view that investors might be cautiously optimistic view given the improving sentiment on the local equities market. The improving appetite in the domestic market could be attributed to a pre-election rally.
Technical Analysis on KLCI Futures
RHB Research has maintained long positions on KLCI futures.
The FKLI continued its upside movement last Friday, climbing 6 points to close stronger at 1,442.50 points. It opened at 1,436 points and, after setting its foothold at the 1,431-point day low, it climbed to test the 1,446.50-point day high before the close – recording a sixth successive positive session. The latest session’s “higher high” pattern showed the bullish momentum is now gaining pace, and the index is looking to test the 50-day SMA line. If it manages to cross the overhead moving average line, the FKLI should then challenge the 1,463-point resistance. Meanwhile, if profit-taking activities happen, the index will find support at 1,418 points. For now, the RSI is trending higher, echoing that the bulls are still in the driver’s seat. As such, we expect the positive price action to follow-through in the immediate session and hold on to the bullish bias.
Traders are advised to maintain the long positions initiated at 1,436.50 points or the closing level of 20 Oct. To protect the downside risks, the stop-loss threshold is adjusted higher to 1,396 points from 1,360.50 points.
The immediate support is marked at 1,418 points – 26 Sep’s high – and followed by 1,396 points, which was the low of 19
Oct. On the upside, the immediate resistance is pegged at 1,463 points or 20 Sep’s high and followed by 1,493.50 points, ie
the high of 12 Sep.
