The FBM KLCI opened at 1,492.53 as compared to yesterday’s close of 1,493.56.
At press time, the index was traded in the range of 1,490.99 – 1,493.06.
At 9:21 am, the index dropped slightly by 2.65 points or 0.18% at 1,490.91
With the US stock markets were closed last night because of holiday, FBM KLCI is expected to be traded in range bound due to the coming Chinese New Year holidays as well as lack of fresh catalysts. Regional performance might have some influence on the trend of the main index for coming day.
Technical Analysis FKLI
RHB Retail Research has once again reiterated its long positions on FKLI.
Despite its attempts to move higher, the FKLI lost all its intraday gains to close 4 pts lower at 1,494 pts yesterday – falling below the opening level. The index began the session lower at 1,496 pts but immediately jumped to the day’s high of 1,501 pts early in the session. However, strong profit-taking dragged it down to 1,492.50 pts near the close. The small black body candlestick with a long upper shadow signals profit-taking activity ahead, below the 1,503-pt immediate resistance level.
Therefore, it is likely to see mild profit-taking towards the 200-day average line in the coming sessions, before the re-emergence of bullish momentum to drive the index above the 1,503-pt and 1,517.50-pt resistance levels. As long as the index manages to sustain above the long-term average line, the medium to long-term bullish bias will remain intact. As the index is trading above the 200-day average line, no change to 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 downside risks, the stop-loss is fixed at 1,459 points.
The immediate support is set at 1,470 pts, followed by 1,459 pts, or the low of 29 Nov 2022. The immediate resistance is at 1,503 pts – 1 Dec 2022’s high – with the higher resistance pegged at 1,517.50 pts, or 25 Nov 2022’s high.
