The FBM KLCI opened at 1,488.54 as compared to last Friday’s close of 1,495.49.
At press time, the main index was traded in the range of 1,482.79 – 1,488.54.
At 9:17am, the index shed 10.62 points or 0.71% at 1484.87.
The benchmark index KLCI is expected to chalk up a positive month in January (resistance: 1,512-1,528-1,540) barring a decisive breakdown below the key 1,454-1,468 supports, accordinf to Hong Leong IB research report.
Technical Analysis on FKLI
RHB Retail Research has maintained long positions on KLCI futures.
The FKLI moved in a volatile fashion on Friday, testing the 200-day SMA line and the immediate resistance level before losing all intraday profits to close 2.5 pts lower at 1,485 points – below the opening level. It opened at 1,487.50 points and jumped to the 1,507-point high before profit-taking emerged. It then fell sharply below the opening level to hit the 1,480-point low before rebounding moderately at the close. The initial bullish momentum, followed by sharp profit-taking that wiped out all its intraday profits, suggest that the FKLI is likely to see further profit-taking towards the 1,459-point immediate support level in the coming sessions, as bullish momentum receded towards the end of Friday’s session. It is expected the FKLI to trade sideways between 1,459 points and 1,503 points in the medium term. This is supported by the RSI pointing sideways at 57%. As the stop-loss has not been 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 2022’s low – followed by 1,445 points. Towards the upside, the immediate resistance is revised to 1,503 points – 1 Dec 2022’s high – followed by 1,517.50 points or 25 Nov 2022’s high.
