The main index FBM KLCI opened at 1,447.50 as compared to yesterday’s close of 1,450.54.
At the time of writing, KLCI oscillated in the range of 1,441.08 – 1,447.50.
The FBM KLCI is anticipated to stay choppy ahead of the general election and long weekend holidays, as market participants adopt a cautious “wait-and-see” attitude.
Technical Analysis on FKLI (KLCI Futures)
RHB Research is keeping long positions on FKLI.
The FKLI demonstrated sharp profit-taking yesterday, falling 14.50 points to settle at 1,450.50 points – in line with the “Bearish Harami” reversal pattern signal that formed on Monday. It opened at 1,465.50 points and then touched the 1,468.50-point high before strong selling pressure kicked in to reverse the momentum downwards. The index then fell sharply towards the end of the session to hit the 1,447-point low before the close. The latest long black body candlestick confirms the previous “Bearish Harami” reversal signals, and we expect the selling interest to persist towards the 1,436-point support in the coming sessions. However, the medium-term uptrend structure remains valid, as it is expected the bulls to be renewed above the 1,436-point support or 50-day SMA line before we see a strong rebound towards the 1,493.50-point resistance or near the 200-day average line. Unless the stop-loss point is triggered, the research house is retaining its bullish bias.
We suggest traders 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 set at 1,436 points – 10 Nov’s low – and followed by 1,407 points, ie 4 Nov’s low. Conversely, the immediate resistance is at 1,481.50 points – 11 Nov’s high – and followed by 1,493.50 points or 12 Sep’s high.
