The FBM KLCI opened at 1,468.99 as compared to yesterday’s close of 1,471.56.
At the time of writing, the main index was traded in the range of 1,468.99 – 1,469.19.
The main index may be directionless at this point pending for more announcements from the new government and also the global economy especially US and China.
Technical Analysis on KLCI Futures (FKLI)
RHB Retail Research has maintained long positions on FKLI.
The FKLI took sharp profits yesterday, moving further away below the 200-day SMA line
while maintaining its uptrend “higher low” bullish posture above the immediate support level. It settled 14.5 points weaker, at 1,472 points. The index opened at 1,488 points, printed the day’s high of 1,493 points and lingered there briefly before strong profit-taking began. It then fell sharply towards the day’s low of 1,469 points before the close.
The latest stronger bearish candlestick (vs the previous session) indicates that profit-taking activities are ramping up, and the FKLI is heading towards the immediate support of 1,459 points. The short-term further profit-taking was supported by the weakening of the RSI, which fell slightly below the trendline yesterday – although it stayed above the 50% level. Hence, the medium-term bullish structure above the 50-day SMA line is expected to remain valid for now. Looking at the medium-term outlook, unless the immediate support level is breached, the research house will maintain a positive trading bias.
Traders should maintain the long positions initiated at 1,475.50 points (11 Nov’s close). To manage the downside risks, the stop-loss is set at 1,459 points.
The immediate support remains at 1,459 points (29 Nov’s low), followed by 1,445 points. Towards the upside, the immediate resistance is also still at 1,517.5 points – 25 Nov’s high – then 1,531 points
