Bursa KL Bounces Off The 1,400-Pt Mark

The Malaysia stock market on Tuesday ended the three-day slide in which it had slipped more than 15 points or 1 percent.

At 9.20am, the FBM KLCI opened at 1414.01.

RHB Retail Research, in a note today (March 29) said the FKLI reversed its intraday momentum yesterday, writing-off its losses to close in positive territory. It settled 9.5 pts stronger at 1,404 pts.

The index opened higher at 1,396 pts but soon fell to the day’s 1,385.50-pt low.

Strong buying pressure then lifted the index until the end of the session. It hit the 1,407.50-pt high before retracing moderately at the close.

The latest white body candlestick with a long lower shadow signals the renewed buying momentum above the 1,382-pt immediate support level.

The index is now eyeing a rebound towards the immediate resistance at 1,423 pts, backed by the strong improvement of the RSI momentum indicator to 41% (from 35%).

In the medium-term, if the FKLI reclaims the level above the 1,423-pt resistance, the rebound may continue towards the 1,445-pt resistance.

Unless the 1,445-pt critical level is breached, RHB maintains its negative bias and recommend traders retain the short positions initiated at 1,414 pts, or 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 1,382 pts or 17 Mar’s low, followed by 1,360.50 pts, which was 14 Oct 2022’s low.

Conversely, the immediate resistance is at 1,423 pts – 1 Mar’s low – followed by 1,445 pts or the high of 7 Mar.

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