The FBM KLCI opened at 1,483.77 as compared to last Friday’s close of 1,486.54.
At the time of writing, the main index oscillated in the range of 1,480.17 – 1,486.68.
The main index opened lower following the negative cue of the performance of Wall Street overnight.
Technical Analysis on KLCI Futures.
RHB Retail Research has maintained long positions on FKLI.
After experiencing the best YTD session last Thursday, the FKLI then took profits on Friday – reclaiming below the 200-day average line and settling 15 pts weaker at 1,498.50 pts. The index started off weaker at 1,511 pts and whipsawed in downwards fashion between the 1,517.50-pt high and 1,485-pt low, which saw it rebound moderately towards the close.
Last Friday’s profit-taking action, which followed Thursday’s “Bullish Marubozu”, was likely due to the strong selling pressure near the 200-day long-term average line. Hence, we expect the KLI to hover and trade sideways near this line in the coming sessions. For the medium term, since the RSI’s strength is printing at the 63% level within the positive trendline, we expect the bullish momentum to be renewed and extend the upside movement towards the next resistances at 1,531 pts and 1,565 pts. If profit-taking persists, we expect the strong support to emerge at 1,475 pts. Riding on the strong bullish momentum, we stick to our positive trading bias.
We recommend traders stick to the long positions initiated at 1,475.50 pts or the closing level of 11 Nov. To mitigate the trading risks, the stop-loss threshold is placed at 1,445 pts. The immediate support is pegged at 1,475 pts and followed by the 1,445-pt whole number.
Conversely, the immediate resistance is fixed at 1,531 pts with a higher resistance at 1,565 pts
