The FBM KLCI opened marginally higher at 1,474.72 as compared to last Friday’s close of 1,474.59.
At the press time, the index was traded in the range of 1,470.72 – 1,474.84.
At 9:14 pm, the main index slid lower by 2.75 points or 0.19% at 1,471.84.
The main index is expected to consolidate within the 1,470-1,490 range after an encourage print of 2022 gross domestic product (GDP) data was released on last Friday.
Technical Analysis on FKLI
RHB Retail Research has maintained short positions on FKLI.
The FKLI bounced off the immediate support and closed 13 points higher at 1,474 pts last Friday. It opened at 1,462.50 points, formed the intraday low of 1,457.50 points and began recouping all the intraday losses. The index then progressed north to print the intraday high of 1,477 points before closing in positive territory.
The latest price action affirms that strong support has formed at 1,460 points. If a positive price action follows through, the FKLI may test the overhead resistance, ie the 50-day and 200-day SMA lines. Crossing above the moving average lines will improve the technical setup. However, a long bearish candlestick or Bearish Marubozu was formed on 7 Feb and led to selling pressure.
As long as the index remains below the Bearish Marubozu’s high or the 1,493.50-point level, the bears will have a technical advantage. Based on the latest technical signals, the countertrend rebound may be short-lived – and make no change to negative trading bias.
Traders should hold on the short positions initiated at 1,474 points or the closing level of 7 Feb. To manage trading risks, the initial stop-loss is set at 1,503 points.
The immediate support is at 1,460 points, followed by 1,435 points or the low of 23 Nov 2022. The immediate resistance has been revised to – 1,493.50 points – the high of 7 Feb and followed by 1,503 points ie the high of 1 Dec 2022.
