The FBM KLCI opened at 1,497.41 as compared to yesterday’s close of 1,499.45.
At the press time, the index was traded in the range of 1,494.73 – 1,497.74.
At 9:12 am, the index fell lower by 2.97 points or -0.2% at 1,496.48.
Technical Analysis on FKLI
RHB Retail Research has continued to maintain long positions on FKLI.
The FKLI attempted to move higher during yesterday’s session, but lost all its intraday profits to close 0.5 pts lower at 1,500 pts – failing to surpass the 1,503-pt immediate resistance level. The index started the session at 1,504.50 pts and climbed to the 1,508-pt high before selling pressure kicked-in. It then shed all its intraday gains to fall to the 1,495.50-pt low before rebounding moderately at the close.
The black body candlestick with an upper and lower shadow signals that the bulls are now starting to take profits from the immediate resistance level. It is expected profit-taking activity to persist in the coming sessions, dragging the index towards the 1,483.50-point support level or near the 200-day average line. In the medium-term, the index may whipsaw between the 1,483.50-point support and the 1,503-point level, with the upside bias of breaching above the immediate resistance. Based on the medium-term outlook, 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 at 1,483.50 points – 10 Jan’s low – followed by 1,465 points, or 15 Dec 2022’s low. The immediate resistance is set at 1,503 points – 1 Dec 2022’s high – followed by 1,517.50 points, which was 25 Nov 2022’s high.
