The FBM KLCI opened at 1,501.30 as compared to last Friday’s close of 1,500.33.
At press time, the index was traded in the range of 1,500.25 – 1,501.86.
At 9:12 am, the index was traded at 1,500.57 as it gained 0.24 point or 0.02%.
The index is expected to show some resilience as the reopening of China’s economy and borders to have a positive economic impact on regional economies.
Technical Analysis on FKLI (KLCI Futures)
RHB Retail Research has continued to retain long positions on HSI futures.
The FKLI rose 2.5 points on the eve of the public holiday to close at 1,500.5 points, after attempting to cross the 1,503-point immediate resistance level. The index started Friday’s session at 1,497 points. After setting a foothold at 1,495.50 points, it climbed to the 1,504-point intraday high before the close.
The candlestick’s long upper shadow confirms that the 1,503-point level is now acting as a strong resistance level. The index has to cross above the immediate resistance to have a stronger footing above the 1,500-point level. If the momentum softens, the index will pull back towards the 200-day SMA line, finding support near 1,483.50 points. A breach of the immediate support level would open the doors for downward movement. At this juncture, the index should move sideways before staging another attempt to cross the resistance level. Pending the bullish breakout, the research house is keeping its positive trading bias.
Traders are advised to keep the long positions initiated at 1,475.50 points, which was the closing level of 11 Nov 2022. To manage the downside risks, the stop-loss is fixed at 1,483.50 points.
The immediate support is marked at 1,483.50 points – 10 Jan’s low – followed by 1,465 points, or the low of 15 Dec 2022. The immediate resistance is set at 1,503 points – 1 Dec 2022’s high –and the subsequent resistance is pegged at 1,517.50 points, which was 25 Nov 2022’s high
