The FBM KLCI opened slightly lower at 1,472.85 as compared to yesterday’s close of 1,473.99.
At press time, the main index was traded in the range of 1,470.59 – 1,475.33.
At 9:18am, the index reversed earlier loss and gained 2.15 points or 0.15% at 1,476.14.
Yesterday’s profit-taking provides a good opportunity for dip-buying. According to analysts, the outlook for the local bourse remains optimistic due to attractive valuations and continuous support from local institutions.
Technical analysis on FKLI
RHB Retail Research has maintained long positions on KLCI futures.
The FKLI trended downwards sharply again yesterday and shed 10.5 points to close at 1,474.5
points, while heading towards the 50-day average line. It opened at 1,487.50 points, printed the high of 1,489 points before falling sharply until the end of the session, and hit the low of 1,473 pts prior to the close. The strong selling pressure following Friday’s strong intraday profit-taking is expected to follow through, to drag the index lower towards the immediate support of 1,459 points, near the 50-day average line.
For the medium term, we expect the FKLI to trade sideways between 1,459 points and 1,503 points – supported by the recently weakening RSI, but still printing at the neutral level at 51%. As the stop-loss has not been triggered, the research house maintains a bullish bias.
Traders should remain in the long positions initiated at 1,475.50 pts or 11 Nov’s close. To manage the trading risks, the stop-loss threshold is set at 1,459 pts.
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 stays at 1,503 points – 1 Dec 2022’s high – followed by 1,517.50 points or 25 Nov 2022’s high
