The FBM KLCI opened at 1,446.72 as compared to yesterday’s close of 1,447.96.
At the time of writing, the main index oscillated in the range of 1,446.16 – 1,451.31.
The index is anticipated to trend lower until the political limbo is settled.
Technical Analysis on FKLI
RHB Research have maintained long positions on FKLI.
The FKLI fell sharply yesterday during the early session before rebounding strongly to recoup most of its intraday losses towards the close. The benchmark index opened significantly lower at 1,432.50 pts, falling sharply towards the 1,419.50-pt low before rebounding strongly towards 1,447.50 pts before closing 3 pts lower from Fridays’s session. The latest bullish candlestick with long lower shadow, which closed lower than the previous session, implies the immediate term rebound may occur following yesterday’s late buying interest but will be capped at the 1,462-pt immediate resistance.
For the medium-term outlook, since the RSI continues to fall towards the 50% level, we expect the bears to drag the FKLI near the 1,436-pt immediate support and also the 50-day SMA line before potentially undergoing a correction below that level. If the correction happens, sentiment will turn negative and it will retrace further towards 1,407 pts. For now, the research house is maintaining a positive trading bias unless the stop-loss point is breached.
Traders are advised to 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 – and followed by 1,407 pts, ie 4 Nov’s low. Conversely, the
immediate resistance is at 1,462 pts or 2 Nov’s close and then 1,481.50 pts, which was the high of 11 Nov.
