Bursa Malaysia opened lower at 9:00 am with the FBM KLCI opened at 1,481.78 as compared to yesterday’s close of 1,483.17.
AT press time, the main index was traded in the range of 1,476.38 – 1,482.11.
KLCI is expected to have a volatile trading session today following the negative cue of Wall Street overnight, after a policy announcement by the Federal Reserve that hiked interest rates by an expected 50 basis points. However, its economic projections see higher rates for a longer period.
Technical Analysis on KLCI Futures (FKLI)
RHB Retail Research has retained its long positions on FKLI.
The FKLI renewed its bullish momentum yesterday and climbed 16 points to close at 1,484 points – and may soon breach the 1,485-point resistance. It opened at 1,470 points, printed the day’s low of 1,468.50 points before propelling upwards throughout the session. It hit the day’s high of 1,487 points before the close. The positive price action hitting the immediate resistance yesterday indicates that the index is eyeing the area above the consolidation phase – backed by the RSI improving above the 50% level. This, coupled with the “higher low” bullish structure above the 50-day SMA line, makes the research house believing that the bullish bias remains intact, with the index expected to rebound above 1,485 points before hitting the 200-day SMA line in the later sessions. Unless the FKLI reverses direction and drops below the
1,459-pt support, the research house is sticking to a bullish bias for now.
Traders should remain in the long positions initiated at 1,475.50 points (11 Nov’s close). To manage the trading risks, the stop-loss is set at 1,459 points.
The immediate support is pegged at 1,459 points – 29 Nov’s low – followed by 1,445 points. Towards the upside, the immediate resistance is unchanged at 1,485 points – 25 Nov’s low – followed by 1,517.5 points, which was the high of 25 Nov.
