FTSE Bursa Malaysia KLCI (FBM KLCI) started with a slight rebound on Friday as investors dipped their feet into the market on the back of positive performance on Wall Street overnight.
Following the previous session’s retreat to its lowest close in three months, investors are likely to stay on the side-lines and await the tabling of Budget 2023 as well as the latest inflation data for domestic trading leads.
At 9.20am, the FTSE Bursa Malaysia KLCI (FBM KLCI) opened marginally higher at 1,458.78 as compared to Thursday’s close of 1,457.65 up +1.13 points.
On the broader market, gainers edged past decliners 162 to 145, while 220 counters were unchanged, 1,708 untraded and 28 others suspended.
Turnover amounted to 179.01 million units, worth RM85.88 million.
Technical Analysis of KLCI
The FKLI fell sharply for the second straight session yesterday, as it erased 7 pts before closing at 1,458.50 pts – crossing below the previous support of 1,460 pts to form a fresh “lower low” bearish pattern.
RJB Retaill Research said in a note today (Feb 24) , the index opened higher at 1,467.50 pts and, after briefly printing the day’s high of 1,470.50 pts, tumbled sharply towards the 1,455.50-pt low before rebounding mildly at the close.
The strong negative momentum, printed for two sessions in a row, accelerates its downward momentum further, and is set to lead the index lower towards the 1,435-pt support in the coming sessions – in line with our expectations, as mentioned in a previous note.
As the RSI has dropped further to the 37% level – indicating that the weak momentum is intact – RHB sticks to their bearish bias.
Traders should maintain the short positions initiated at 1,474 pts, or the closing level of 7 Feb. To mitigate the trading risks, the stop-loss is adjusted to 1,493.50 pts from 1,503 pts.
The immediate support has been revised lower at 1,435 pts, i.e. the low of 23 Nov 2022, followed by 1,400 pts.
Conversely, the immediate resistance revised to 1,480 pts and followed by 1,493.50 pts or the high of 7 Feb.
