The FBM KLCI opened at 1,494.80 as compared to yesterday’s close of 1,495.50.
At press time, the main index was traded in the range of 1,493.71 – 1,497.83.
At 9:22 am, the KLCI inched slightly higher by 2.73 points or 0.18% at 1,498.23.
The index opened higher despite the negative of the Wall Street overnight performance. It could be a dip-buying due to yesterday’s losses when the regional peers ended in bullish note.
According to analysts, the FBM KLCI is still in consolidation stage despite a few attempts to challenge the 1,500 point level. However, the index may see a slight upside due to attractive valuations and hover within the 1,490-1,500 range for the remainder of the week.
Technical Analysis on FKLI (KLCI Futures)
Once again, RHB Retail Research has maintained long positions on FKLI.
The FKLI’s intraday buying interest was capped by the 1,503-point immediate resistance yesterday, which saw it retrace and close neutral at 1,498 points. The index began the session at 1,498 points and oscillated between the 1,502-point high and 1,494.50-point low. This saw the FKLI settle a point lower than the previous close at 1,498 points – the same as the opening.
As it failed to move higher amid intraday profit-taking yesterday, this signals the recent bullish momentum has eased. It is expected the index to pull back towards the 200-day average line or near the 1,483.50-point immediate support in the near term. The medium-term outlook is expected to see the FKLI trade sideways between the 1,483.50-point support and 1,503-point resistance, as the RSI is still printing above the 50% level. Riding on the medium-term outlook, the research house is sticking to its bullish trading bias – unless the immediate support is breached.
Traders stick with the long positions initiated at 1,475.50 points, ie the closing level of 11 Nov 2022. To manage the downside risks, the stop-loss threshold is revised higher to 1,483.50 points.
The immediate support is set at 1,483.50 points – 10 Jan’s low – and followed by 1,459 points or 29 Nov 2022’s low. The immediate resistance is at 1,503 points – 1 Dec 2022’s high – with the higher resistance pegged at 1,517.50 points, which was 25 Nov 2022’s high.
