The FBM KLCI opened at 1,467.37 as compared to yesterday’s close of 1,466.88.
The main index was traded in the range of 1,466.60 – 1,468.21 at press time. It opened higher buoyed by the buying interest in selected heavyweights as well as dip-buying from the recent round of profit-taking.
Technical Analysis on KLCI Futures (FKLI)
RHB Retail Research is maintains long positions on FKLI.
The FKLI resumed its profit taking activities yesterday, as it fell 8 points to close at 1,465 points. Yesterday, it opened at 1,473 points and after touching the high of 1,481 points, the index reversed its direction to fall sharply towards the end of the session. It hit the low at 1,463.50 points before the close. Yesterday’s black body candlestick with a long upper shadow signals the bulls are prepared for a rebound as intraday selling pressure dominated during the late trading session.
This implies that short term profit taking may continue towards the immediate support of 1,459 points. The index is expected to hover near the support level before a possible rebound occurs in the medium term – in line with the current neutral RSI at slightly above the 50% level. However, if that support is breached, the medium term bearish bias may emerge as it forms a “lower low” bearish structure to head towards the 50-day SMA line. As for now, we maintain a positive trading bias unless the stop-loss level is triggered.
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 is at 1,459 points (29 Nov’s low), followed by 1,445 points. Towards the upside, the immediate resistance is unchanged at 1,517.5 points – 25 Nov’s high – then 1,531 points.
