The FBM KLCI opened at 1,463.79 as compared to yesterday’s close of 1,462.55.
At the time of writing, the main index was traded in the range of 1,462.41 – 1,463.99.
At 9:07 am, the index rose marginally by 0.31 point or 0.02% at 1,462.86.
The KLCI may be edging higher as buying interest re-emerges for bargain-hunting.
Technical Analysis on KLCI Futures (FKLI)
RHB Retail Research is keeping its long positions in FKLI.
The FKLI paused Tuesday’s strong selling pressure, inching mildly lower by 4 points yesterday
to settle at 1,463.50 points – within the sideways consolidation phase. The index opened at 1,465.50 points and briefly touched the 1,472-point high but fell lower towards the end of the session, hitting the 1,462-point low before the close. The mild selling interest yesterday suggests the recent strong selling pressure has taken a breather, signalling a sideways movement in the coming sessions.
The research house expects the strong buying pressure at 1,459 points to defend the FKLI from falling lower in the coming sessions. Since the 50-day average line is pointing higher, it expects the medium-term uptrend movement to remain intact.
Amid the declining selling pressure yesterday, it is believed a renewed buying interest will
occur in the later sessions. Since the stop-loss level has yet to be triggered, the research house is sticking 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 – and followed by 1,445 points. Towards the upside, the immediate resistance is fixed at 1,485 points – 25 Nov’s low – and followed by 1,517.50 points, ie the high of 25 Nov.
