The FBM KLCI skidded and opened at 1,434.55 as compared to last Friday’s close of 1,449.32.
At the time of writing, the main index oscillated in the range of 1,429.32 – 1,439.04.
With the political impasse that the nation is witnessing right now from the recently concluded elections, market conditions are likely to be volatile at the start of the week as investors shall remain wary.
Technical Analysis on FKLI
RHB Research has maintained long positions on KLCI futures.
The FKLI struggled to stage a rebound last Thursday as sentiment turned cautious before the market closed for holiday. The benchmark index opened 1,446.50 pts, traded between 1,453.50 pts and 1,444 pts before closing at 1,449.50 pts, with a gain of 3 pts from Wednesday’s session. Despite the bullish candlestick, the RSI has fallen below the trendline – indicating bullish momentum is decelerating.
In the event the index undergoes a correction below the 1,436-pt support or breaches the 50-day SMA line, sentiment would turned negative. In this scenario, the index would retrace towards 1,407 pts. Meanwhile, the bulls may attempt to hold the ground of the moving average line. The research house will maintain a positive trading bias until stop-loss is breached.
Traders should stick to the long positions initiated at 1,475.50 pts or the closing level of 11 Nov. To mitigate the downside risks, the initial stop-loss threshold is set at 1,436 pts.
The immediate support stays at 1,436 pts (10 Nov’s low), followed by 1,407 pts (4 Nov’s low). Conversely, the
immediate resistance is at 1,462 – 2 Nov’s close – then 1,481.50 pts ie the high of 11 Nov.
