The FBM KLCI opened slightly higher at 1,473.36 at 9.05 am Tuesday as compared to yesterday’s close of 1,4673.46.
However, on the broader market, gainers edged past decliners 167 to 152, while 284 counters were unchanged, 1,621 untraded and 11 others suspended.
Turnover amounted to 354.53 million units worth RM112.68 million.
After falling sharply last Friday, the FKLI paused its momentum yesterday (Feb 20) as it closed 0.5 pts positive at 1,476.50 pts – below both the 200-and 50-day SMA lines.
RHB Retail Research today said the index opened higher at 1,478 pts and oscillated in a tight range between 1,481.50 pts and 1,472 pts throughout the session, which saw it close marginally below the opening.
The neutral price action following the previous session’s selling momentum is taking a pause from the “Shooting Star” bearish reversal signal that formed earlier.
The research house expects the downwards movement to continue in the coming sessions, falling lower towards the 1,460-pt support.
As long as the FKLI is still trading below the 200-day average line, the medium- to long-term bearish momentum remains intact.
The correction will continue until the formation of a bullish reversal pattern emerges.
Meanwhile, expect 1,493.50 pts or the high of the Bearish Marubozu to now act as a strong resistance.
Coupled with the weak RSI printing at 45%, RHB says they will stick to its negative trading bias.
Traders are advised to retain the short positions initiated at 1,474 pts or the closing level of 7 Feb.
To mitigate the trading risks, the initial stop-loss threshold is placed at 1,503 pts.
The immediate support is marked at 1,460 pts and followed by 1,435 pts, ie 23 Nov 2022’s low.
Conversely, the immediate resistance remains at 1,493.50 pts – 7 Feb’s high – and is followed by 1,503 pts or 1 Dec 2022’s high.
