The Malaysia stock market has ticked higher in back-to-back sessions, collecting more than 10 points or 0.7 percent along the way.
At 9.15am, the FBM KLCI opened at 1404.08.
RHB Retail Research said today the FKLI bounced off the 1,400 pt-mark yesterday as it climbed 3.50 pts to close at 1,407.50 pts – still below the immediate resistance of 1,423 pts.
The index started positively at 1,408 pts and oscillated between 1,411.50 pts and 1,403 pts – and closed just 0.50 pts below the opening level. Despite yesterday’s attempted rebound, it is likely to move sideways in the coming sessions – above 1,400 pts. Our thesis is supported by the RSI still pointing below the 40% level. For the major trend, it is worth noting that the 50- and 200-day SMA lines continue to trend lower, suggesting the bears still have technical advantage.
“Hence, we expect the FKLI to hover above 1,400 pts in the coming sessions before turning bearish in later sessions to breach below that level. Based on the medium-term outlook, we maintain our bearish bias,” the research house said.
RHB advises traders to hold on to their short positions initiated at 1,414 pts, ie 10 Mar’s close. To mitigate the trading risks, the initial stop-loss threshold is fixed at 1,445 pts.
The immediate support is set at 1,400 pts and followed by 1,382 pts, which was 17 Mar’s low. Conversely, the immediate resistance is at 1,423 pts – 1 Mar’s low – and followed by 1,445 pts or the high of 7 Mar.
