Burssa Malaysia opened almost flattish today, with the FBM KLCI index opened at 1,479.53 as compared to yesterday’s close of 1,480.93.
At the time of writing, the KLCI was traded in the range of 1,479.42 – 1,482.39.
At 9:17 am, the main index dropped marginally by 0.56 point or -0.04% at 1,480.37.
The KLCI opened lower following the negative cue of the Wall Street overnight performance. It headed south after strong labour market data with Dow Jones Industrial Average shed 1.02% or 339.69 points to 32,930.08, while Nasdaq tumbled 1.47% or 153.52 points at 10,305.24.
Technical Analysis on FKLI (KLCI futures)
RHB Retail Research has continued to maintain long positions on FKLI.
The FKLI managed to fend off selling pressure, staging a rebound to close at 1,479 points –
maintaining its position above the 50-day SMA line. The index began yesterday’s session at 1,468 points and climbed higher throughout the session, hitting the 1,485.50-point intraday high. It pulled back in the afternoon to close at 1,479 points. Although the price action was positive, the index has yet to chart a fresh “higher high” bullish candlestick.
It is observed that the RSI is hovering near the 50% level, and that momentum remains weak. If the positive price action follows through, the index may test the 1,503-point immediate resistance level. Otherwise, a breach below the 50-day SMA line will increase the risk of correction. For now, as the 1,459-point immediate support level remains intact, the research house is keeping its positive trading bias.
Traders keep the long positions initiated at 1,475.50 points, or the closing level of 11 Nov 2022. To manage downside risks, the stop-loss is fixed at 1,459 points.
The immediate support remains at 1,459 points – 29 Nov 2022’s low – followed by 1,445 points. The immediate resistance stays at 1,503 points – 1 Dec 2022’s high – and the subsequent resistance is at 1,517.50 points, or 25 Nov 2022’s high.
