The FBM KLCI opened at 1,461.51 as compared to yesterday’s close of 1,464.00.
At the time of writing, the KLCI traded in the range of 1,461.51 and 1,459.29.
KLCI may be entering to the consolidation stage as external factors such as hawkish remarks from Federal Reserve and also COVID outbreak in China.
Technical Analysis on FKLI
RHB Research has continued to maintain long positions KLCI futures (FKLI).
After rebounding higher for three consecutive sessions, the FKLI took partial profits yesterday, settling 10.50 points lower at 1,465 points – still above the 1,463-point immediate support. The index opened slightly lower at 1,473 points and then immediately headed southwards throughout the session – hitting the intraday low of 1,462.50 points before the close. The latest “Bearish Harami” reversal pattern signals that profit-taking may persist in the immediate sessions, breaching below the 1,463-point support to head to the next support level of 1,436 points.
Nevertheless, the medium-term uptrend structure remains intact, it is expected the bulls to be renewed above the 1,436-point support or 50-day SMA line and observe a strong rebound towards the 1,493.50-point resistance or near the 200-day average line. Unless the selling pressure accelerates, which triggers the stop-loss level, the research house retains its bullish bias.
Traders are advised to stick to the long positions initiated at 1,475.50 points, ie the closing level of 11 Nov. To mitigate the trading risks, the initial stop-loss threshold is set at 1,436 points.
The immediate support is at 1,463 points – 20 Sep’s high – and followed by 1,436 points, ie 10 Nov’s low. Conversely, the immediate resistance is at 1,493.50 points – 12 Sep’s high – and followed by 1,511.50 points or the high of 30 Aug.
