The FBM KLCI opened slightly higher at 1,465.05 as compared to yesterday’s close of 1,464.64.
At the press time, the index was traded in the range of 1,463.31 – 1,468.31.
At 9:16am, the index rose 2.92 points or 0.2% at 1,467.56.
Technical Analysis on FKLI
The FKLI continued its bearish momentum for the fourth consecutive session, losing 7.5 points
to settle at 1,461 points yesterday. It opened at 1,468 points, and after briefly touching the 1,469.50-point high, it moved lower for the rest of the session – hitting the 1,460-point low before closing at 1,461 points.
The latest bearish candlestick has accelerated the downward movement below the 50-day average line, and the index is likely to fall further below yesterday’s low of 1,460 points. As the RSI leading indicator is printing lower at 36%, the index is expected to continue its downward movement towards 1,435 points in the medium term. Based on the downward movement, RHB Retail Research is sticking to its negative trading bias.
Traders keep the long positions initiated at 1,474 points or the closing level of 7 Feb. To minimise downside risks, the initial stop-loss is set at 1,503 points.
The immediate support is lowered to 1,460 points, or 9 Feb’s low, followed by 1,435 pts, or 23 Nov 2022’s low. The immediate resistance stays at 1,503 points (1 Dec 2022’s high), followed by 1,517.50 points, or the high of 25 Nov 2022.
