The FBM KLCI opened higher at 1,488.82 as compared to Tuesday’s close of 1,485.50.
At the press time, the index was traded in the range of 1,488.82 – 1,493.21.
At 9:14 am, the index widened its gains by improving 5.998 points or 0.40% at 1,491.48
The KLCI may play a catch up today as the local bourse was closed because of Federal Territory Day when the regional bourses ended in green yesterday.
Technical Analysis on FKLI
Bulls resorted to taking profit on the FKLI just before the US Federal Open Market Committee made its decision on the benchmark interest rate. The index ceded 9 points to close at 1,490.50 points on Tuesday. It opened at 1,499.50 points, printed the day’s high of 1,501 points, then pulled back towards the day’s low of 1,485.50 points before closing – indicating that it may build an interim base near the 200-day SMA line.
Since 12 Jan, the index has been trading above the 200-day SMA line, so falling below the moving average line would dent the market sentiment. As such, RHB Retail Research holds the view that the bulls will attempt to consolidate near the long-term moving average line and stage a rebound from the 1,483.50-point support. Post consolidation, it may resume the uptrend.
If the immediate support gives way, this will negate the bullish setup. For now, the immediate support remains intact and the research house is maintaining a positive trading bias.
Traders should stick to the long positions initiated at 1,475.50 points (11 Nov’s close). To minimise the trading risks, the stop-loss is set at 1,483.50 points. The immediate support is at 1,483.50 points – 10 Jan’s low – followed by 1,465 points ie the close of 15 Dec 2022.
Conversely, the immediate resistance is pegged at 1,503 points – 1 Dec 2022’s high – with the
higher resistance eyed at 1,517.50 points ie the high of 25 Nov 2022.
