The FBM KLCI opened at 1,467.01 as compared to yesterday’s close of 1,467.32.
At 9:03am, the main index down marginally by 0.99 point or -0.07% at 1,466.33.
At the time of writing, the index was traded at 1,466.50 – 1,467.01.
Pressured by external and macroeconomic factors, KLCI expected to remain volatile and directionless before the long weekend.
Technical Analysis on FKLI
RHB Retail Research has retained its long positions on FKLI.
The FKLI failed to climb above the consolidation phase yesterday, as selling pressure re-emerged to drag it 15 points lower to 1,467.50 points. It opened at 1,481.50 points and briefly touched the 1,485-point high before strong selling pressure kicked in. The index then fell sharply until the end of the session, hitting the 1,463-point low before the close – below the previous session’s low.
The negative candlestick that nullified the previous session’s positive candlestick suggests that selling pressure within the consolidation phase is intensifying, and therefore increasing the
risk of breaching the 1,459-point immediate support level in the coming sessions. Based on the RSI weakening towards the 50% level, it is likely the FKLI will move sideways in the short term within the consolidation phase, with increased risk of falling below the 1,485-point immediate resistance. Until the immediate support level is breached, the research house will stick to a bullish bias.
Traders should remain in the long positions initiated at 1,475.50 points, or 11 Nov’s close. To manage the trading risks, the stop-loss threshold is set at 1,459 points.
The immediate support is still at 1,459 points – 29 Nov’s low – followed by 1,445 points. Towards the upside, the immediate resistance is fixed at 1,485 points – 25 Nov’s low – followed by 1,517.5 points, or the high of 25 Nov.
