The FBM KLCI opened at 1,450.98 as compared to yesterday’s close of 1,445.92.
At the time of writing, the main index oscillated in the range of 1,447.02 – 1,451.92.
The index moved higher at the opening as it is supported by bargain-hunting activities ahead of the US FOMC meeting today and Bank Negara Malaysia’s (BNM) Monetary Policy Committee meeting on Wednesday and Thursday.
Technical Analysis on KLCI Futures (FKLI)
RHB Research has maintained long positions on FKLI futures.
The FKLI continued to trade beneath the immediate resistance as it fell 5.5 pts to close at 1,453 pts yesterday – touching the low near the 50-day SMA line. Yesterday, it initially opened higher at 1,461.5 pts, only to whipsaw between the high of 1,466.5 pts and low of 1,446 pts, which saw strong intraday profit taking from the day’s
high to close in a negative territory. The latest bearish candlestick following the recent failed attempt to surpass the
immediate resistance suggests that the index may continue to trade sideways between the 1,463-pt resistance and
1,441-pt support in the coming sessions. For the medium term, if it manages to sustain above the 50-day SMA line,
strong buying interest is likely to follow through to propel the FKLI above the 1,463-pt immediate resistance. As such,
we keep to our positive bias, unless the stop-loss level is triggered.
Traders should maintain the long positions initiated at 1,436.50 pts, or the closing level of 20 Oct. To protect the downside risks, the stop-loss is set at 1,418 pts.
The immediate support is at 1,441 pts – 25 Oct’s low – followed by 1,418 pts, which was the high of 26 Sep. The
immediate resistance is pegged at 1,463 pts, or 20 Sep’s high, followed by 1,493.50 pts ie the high of 12 Sep
