The FBM KLCI opened higher, at 1,457.96 as compared to yesterday’s closing of 1,454.98.
At the time of writing, the main index oscillated between 1,455.21 – 1,458.80.
According to analysts, the recent rebound is due to a pre-election rally.
Technical Analysis on FKLI (KLCI Futures)
RHB Research has retained its long positions on KLCI futures.
The FKLI climbed above the 50-day SMA line, and closed at 1,459.50 points yesterday, thereby negating the Shooting Star that was formed in previous sessions. The index opened at 1,445.50 points, set its foothold at the session’s low of 1,443.50 points, then trended north throughout the rest of the session – hitting the session’s high of 1,460.50 points before closing in positive territory. The latest positive price action affirms that the bulls are still in control. The bullish setup was further strengthened after the index reclaimed the 50-day SMA line. The bulls have now set their sights on 1,463 points, followed by 1,493.50 points. In the event that traders take profit, the FKLI may retrace towards 1,441 points. Looking at the RSI, the indicator is trending higher – which indicates that a positive price action should follow through. As such, the research house is keeping its bullish bias unchanged.
Traders should remain in the long positions initiated at 1,436.50 points, or the closing level of 20 Oct. To manage trading risks, the stop-loss is set at 1,418 points.
The immediate support has shifted upwards to 1,441 points – 25 Oct ‘s low – followed by 1,418 points i.e. 26 Sep’s high. Meanwhile, the immediate resistance is at 1,463 points – 20 Sep’s high – followed by 1,493.50 points, which is the high of 12 Sep.
