The FBM KLCI opened at 1,474.39 as compared to last Friday’s close of 1,474.68.
At press time, the index was traded in the range of 1,473.01 – 1,474.46.
At 9:06am, the main index ceded 4.77 points or -0.32% at 1,469.91.
Technical Analysis on KLCI Futures (FKLI)
RHB Retail Research has continued to maintain long positions on FKLI.
The FKLI managed to trade within its sideways consolidation range last Friday as it recouped all its intraday losses to settle 2.50 points positive at 1,470.50 points – above the 1,459-point immediate support. The index opened lower at 1,466 points and then fell sharply towards the 1,453.50-point intraday low during the early session. Buying pressure then re-emerged, which saw the FKLI rebounding strongly until the end of the session and hitting the 1,473-point high before the close.
The bullish candlestick with long lower shadow indicates strong buying interest has blocked the index from falling below the 1,459-point immediate support. Hence, we expect the buying interest to follow through in the coming sessions, seeing the FKLI rebound towards the 1,485-point immediate resistance. The medium-term bullish outlook remains, as the index is trading above the 50-day average line – this is coupled with the RSI strengthening at 51%. As such, the research house is sticking to a bullish bias – unless the momentum reverses.
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.
