Bursa Malaysia opened higher for the second consecutive day, tracking gains on Wall Street as traders became more confident about inflation cooling down in the United States and the effectiveness of the Federal Reserve’s previous rate hikes, said a dealer.
At 9.05 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) increased by 1.99 points to 1,489.86 from yesterday’s close of 1,487.87.
The market bellwether opened 0.70 point firmer at 1,488.57.
RHB Retail Research has reiterated its long positions on FKLI.
After falling back below the 200-day average line, the FKLI printed a mild rebound to close 2.5 points higher at 1,487.5 points – failing to reclaim the level above the long-term average line amid intraday profit-taking.
It started yesterday’s session on a neutral tone at 1,485.5 points. After briefly touching the 1,484.5-point low, the index bounced off to the 1,491-point high.
It then took profit, writing-off most of its gains towards the close. Yesterday’s mild bullish candlestick – following Tuesday’s profit-taking – indicates that profit-taking has paused, and the FKLI may continue moving sideways near the 200-day average line in the coming sessions.
If it manages to reclaim the level above the long-term average line, the index would move up towards the 1,503-point resistance level. However, if it fails to reclaim this level, selling pressure may persist, bringing it towards the 50-day average line. No change to 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).
