The FBM KLCI opened slightly higher at 1,490.56 vis-a-vis yesterday’s close of 1,489.80.
At the press time, the index was traded in the range of 1,490.56 – 1,493.34.
At 9:12am, the index improved 0.11% or 1.59 points at 1,491.39.
The local bourse may take the positive cue from the overnight performance of Wall Street.
The US Technology stocks surged overnight, driven by strong earnings from Meta Platforms and anticipation of the Federal Reserve’s rate hikes are almost over. The Nasdaq Composite spiked 3.3%, while the S&P 500 climbed 1.5%.
Technical Analysis on FKLI
After Tuesday’s profit-taking, the FKLI reversed its momentum, jumping 10.50 points to close at 1,501 points yesterday – heading towards the immediate resistance level. The index opened Wednesday’s session slightly higher at 1,494 points. After touching the low of 1,490 points, it bounced off to hit the 1,501.50-point high before the close.
The positive price action within the sideways consolidation phase suggests that the index is poised to climb higher above the 1,503-point immediate resistance level in the coming sessions. This is supported by the positive strength of the RSI, which is pointing higher at 57%. If it manages to surpass this level, the index may propel towards 1,517.50 points in the medium term to firm up its positive momentum above the 200-day average line. Pending a bullish breakout, we stick to a positive trading bias.
Traders should hold on to the long positions initiated at 1,475.50 points (11 Nov 2022’s close). To mitigate the trading risks, the trailing-stop is pegged at 1,483.50 points.
The immediate support is set at 1,483.50 points or 10 Jan’s low, followed by 1,465 points, which was the close of 15 Dec. The immediate resistance stays at 1,503 points (1 Dec 2022’s high), with the higher resistance at 1,517.50 points (25 Nov 2022’s high).