The Malaysia stock market on Monday closed with the key index moving in a tight range, in tandem with regional peers. The Kuala Lumpur Composite Index now rests just above the 1,425-point plateau and it’s expected to see some movement upward on Tuesday.
At 9.20am, the FBM KLCI opened at 1427.95.
RHB Retail Research, in a note today (April 11), said the FKLI’s rebound extended yesterday from the recent pullback as it gained another 2.5 pts and settled at 1,428 pts amid partial intraday profit-taking.
It opened at 1,425 pts and jumped towards the 1,432-pt high before partially taking profits towards the close. Yesterday’s positive rebound suggests the index is in the process of resuming a counter-trend rebound.
However, the late selling pressure during the intraday session indicates that the immediate rebound may have eased, and we can expect a sideways movement in the coming sessions. Coupled with the 50-day SMA line pointing downwards, the latest rebound is still within the major downtrend – the FKLI’s movement will likely retrace towards the 1,412-pt immediate support.
Nevertheless, if the benchmark index move upwards and breaching the 1,445-pt immediate resistance, its medium-term trend will reverse to the positive.
Unless the stop-loss point is triggered, we stick to our negative trading bias.
Traders should maintain the short positions initiated at 1,414 pts, ie the close of 10 Mar. To minimise the trading risks, the initial stop-loss threshold is set at 1,445 pts.
The immediate support is still at 1,412 pts – 17 Mar’s close – and followed by 1,400 pts. Towards the upside, the immediate resistance is pegged at 1,445 pts – 7 Mar’s high – and followed by 1,476 pts or the close of 17 Feb.
