Bursa Malaysia opened in a mild bullish mode this morning. The FBM KLCI opened at 1,467.90 as compared to yesterday’s close of 1,465.93.
At 9:24am, the index gained 5.18 points or 0.35% at 1,471.11
At press time, the benchmark index was traded in the range of 1,467.60 – 1,469.23.
The index may trail the positive cue of Wall Street performance overnight.
Technical Analysis on KLCI Futures (FKLI)
RHB Retail Research has retained long positions on FKLI.
The FKLI failed to stage a rebound on Thursday, declining 4.50 points to close at 1,460.50 points in its attempt to hold above the 1,459 support. The index initially started off on positive sentiment, opening at 1,463 points and rising towards the day’s high at 1,474 points. However, strong profit taking activities dragged it to the day’s low at 1,459 points before the close. The latest bearish price action saw the formation of a fresh “lower low”, indicating that momentum remains weak.
In the event the negative momentum accelerates, the index may breach the 1,459-point support. As of now, the Bullish Marubozu candlestick, charted on 24 Nov, is deemed intact. Hence, the bulls may attempt to stage a rebound to avert a bearish breakout. The research house is keeping to the positive trading bias until the immediate support gives way.
Traders should keep the long positions initiated at 1,475.50 points (11 Nov’s close). To protect against the downside risks, the stop-loss is placed at 1,459 points.
The immediate support is marked at 1,459 points – 29 Nov’s low – followed by 1,445 points. On the other hand, the immediate resistance revised to 1,485 points – 25 Nov’s low – followed by 1,517.5 points, or the high of 25 Nov.
