Buying Interest Re-Emerges, FBM KLCI Climbed Higher

The FBM KLCI opened at 1,490.80 as compared to yesterday’s close of 1,488.80.

At the time of writing, the main index was traded in the range of 1,490.69 – 1,494.67.

Technical Analysis on FKLI

RHB Retail Research has maintained long positions on KLCI futures.

After falling sharply on Tuesday, the FKLI reversed its momentum yesterday to settle 14.50
points stronger at 1,483 points – partially recouping Tuesday’s selldown. Yesterday, the index opened higher at 1,471 points and, after briefly touching the 1,465.50-point low, strong buying interest re-emerged to propel the index northwards to touch the 1,492-point high (which was also the previous session’s opening level). It then took partial profits from the intraday high towards the close.

The latest bullish session indicates that recent strong profit taking activities have been capped at the 1,459-point support (Tuesday’s low), and is in the midst to rebound higher in the medium term – as it formed a “higher low” bullish pattern above the 50-day SAM line. The immediate term outlook is expected to be volatile, whipsawing between the 1,459-point support and the 200-day average line. With the “Bullish Marubozu” candlestick formed on 24 Nov remaining valid in the medium term, the research house is sticking to its positive trading bias.

Traders are advised 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 revised higher to 1,459 pts.

The immediate support is changed to 1,459 points, or 29 Nov’s low, followed by 1,445 points. Conversely, the immediate resistance is lowered to 1,517.5 points, or 25 Nov’s high, with a higher resistance at 1,531 points.

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