AT 9:00a.m. this morning, FBM KLCI opened at 1,448.32 as compared to yesterday’s close of 1,451.61.
At the time of writing, the main index oscillated in the range of 1,445.06 – 1,448.32.
Analysts expect the FBM KLCI index to trade in range bound between 1,440-1,460 as investors’ sentiment remains cautious as eyes will be on Bank Negara (BNM) move on interest rates today.
Technical Analysis on FKLI
RHB Research has maintained long positions on FKLI.
Despite moving sideways for a consolidation, the FKLI rebounded by 9 points and closed at 1,462 points yesterday. It opened at 1,454.50 points, then bounced off the intraday low of 1,445.50 points to a close at the day’s high, with a shaved upper shadow. The latest price action indicates that trading momentum remains strong, and the index is still above the 50-day SMA line. In September, bearish momentum picked up once the index fell below the 50-day SMA line. Hence, trading above the 50-day SMA line should improve the market sentiment. Towards the downside, should the index revert to profit-taking activities, the support levels would be at 1,441 points and 1,418 points. No change to positive bias until a stop-loss is triggered.
Traders should remain in the long positions initiated at 1,436.50 points, or the closing level of 20 Oct. To mitigate the downside risks, the stop-loss is at 1,418 points.
The immediate support is at 1,441 points – 25 Oct’s low – followed by 1,418 points, which was the high of 26 Sep. The immediate resistance is set at 1,463 points, or 20 Sep’s high, followed by 1,493.50 points ie the high of 12 Sep.
