The FBM KLCI opened at 1,487.04 as compared to yesterday’s close of 1,485.13.
The main index was traded in the range of 1,484.35 – 1,487.04 at press time.
At 9:18 am, KLCI was consolidating by moved up slightly 1.22 points or 0.08% at 1,486.35.
Following Federal Reserve Chair Powell refrained in a speech from commenting on rate policy, Wall Street closed higher with Dow Jones gained 0.56% to 33, 704.10, whilst Nasdaq made a stride by jumping 1.01% to 10,742.63.
Technical Analysis on FKLI (KLCI Futures)
Maintain long positions.
After crossing above the 200-day average line on Monday, the FKLI fell back below this level
yesterday, settling 9.5 points weaker at 1,485 points – below the previous session’s low. It started Tuesday’s session higher, at 1,495.5 points, and climbed to the 1,501-point high before reversing its direction. Strong selling pressure kicked-in to drag the index down towards the end of the session – it hit the 1,483.5-point low before the close.
The selling pressure that dragged it below the long-term average line indicates that there will be short-term profit-taking towards the 50-day average line (1,466 points). It is expected the FKLI to whipsaw between the 50-day and 200-day average lines in the medium term, before reclaiming the level above the 200-day average line. Towards the downside, the 1,459-point level is still acting as a support. As the stop-loss level remains intact, the research house is keeping its positive trading bias.
Traders are advised to hold on to the long positions initiated at 1,475.50 points, which was the closing level of 11 Nov 2022.
To minimise downside risks, the stop-loss is set at 1,459 points. The immediate support stays at 1,459 points – 29 Nov 2022’s low – followed by 1,445 points. The immediate resistance is pegged at 1,503 points – 1 Dec 2022’s high – followed by the higher resistance at 1,517.50 points (25 Nov 2022’s high).