The FBM KLCI staged a rebound on last Friday, climbing 9 pts and settled at 1,436 pts.
At 9.15am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) opened at 1,460.98.
RHB Retail Research, in a note today (Mac 6) said on Friday, the index opened higher at 1,428 pts. After forming an intraday low at 1,426 pts, it rose towards 1,437.50 pts before the close.
The latest bullish candlestick showed the bullish momentum is picking up pace again. If the index manages to cross above the 1,439.50-pt resistance, it should attract further bullish momentum to lift it higher and fill the gap formed on 28 Feb.
Towards the downside, breaching below the 1,423-pt support will resume the correction.
Observe that the index is trading below both the 50-day and 200-day SMA lines, hence, the longer trend still tends to be bearish. Amidst the counter-trend rebound, RHB still holds on to our bearish trading bias.
Traders are advised to hold on to the short positions initiated at 1,474 pts, or the closing level of 7 Feb. To mitigate the trading risks, the trailing stop is set at 1,439.50 pts.
The immediate support is revised to 1,423 pts – 1 Mar’s low, followed by the 1,400-pt whole number. On the flip side, the immediate resistance stays at 1,439.50 pts – 1 Mar’s high – followed by 1,474 pts, or the close of 7 Feb.
