FBM KLCI Expected to Trend Higher This Week

The FBM KLCI opened at 1,494.81 as compared to last Friday’s closing of 1,495.03.

At press time, the main index was traded in the range of 1,494.41 – 1,496.05.

At 9:12 am, the KLCI remained flattish by gained marginally 0.07 point or 0.00% at 1,495.10

According to analysts, the KLCI is expected to trend higher this week as investors will start to buy Malaysian assets with linkages to China’s economy such as commodities, tourism, and industrial exports.

Technical Analysis in FKLI (KLCI Futures)

RHB Retail Research has continued to maintain long positions on FKLI.

After crossing above the 200-day SMA line, the FKLI continued to charge higher last Friday,
rising 5.50 points to close at 1,498 points – on the cusp of crossing the 1,503-point resistance. Last Friday, the index began the session at 1,492.50 points. After the opening, it progressed higher until it hit the intraday high at 1,498.50 points before the close. The candlestick with a shaved lower shadow affirms the bulls are firmly in control now.

We are likely to see a follow through of momentum to drive the index above the 1,503-point resistance. Breaching that resistance should see it reclaimed the 1,500-point level. This will improve market sentiment and attract further buying momentum. Conversely, the 1,470-point has become the immediate support. Amidst the bullish momentum, the research house is holding on to its positive trading bias.

Traders are advised to stick with the long positions initiated at 1,475.50 points, which was the closing level of 11 Nov.

To manage the downside risks, the stop-loss is fixed at 1,459 points. The immediate support is adjusted higher to 1,470 points, followed by 1,459 points, or the low of 29 Nov 2022. Meanwhile, the immediate resistance remains unchanged at 1,503 points – 1 Dec 2022’s high – with the higher resistance pegged at 1,517.50 points ie 25 Nov 2022’s high.

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