Bursa Malaysia on Monday snapped the modest two-day winning streak in which it had gathered almost 10 points or 0.6 percent along the way.
The Kuala Lumpur Composite Index now rests just above the 1,665-point plateau although it’s likely to bounce higher again on Tuesday.
At 9.15am, the FBKLCI rose +1.95 points to open at 1,667.25.
RHB Retail Research (RHB) in a note today (Sept 24) said the FKLI experienced mild profit-taking yesterday, declining 13.50 pts to close lower at 1,660.50 pts.
The index started off the session at 1,675 pts.
It then progressed lower towards the 1,657-pt day low before closing at 1,657 pts.
Despite undergoing a mild correction, the FKLI still trades above the 50-day SMA line.
Should the index remain above this medium-term moving average line, the bulls will still own the technical advantage.
In the event selling pressure increases, the FKLI may pull back towards the 1,630-pt support.
As long as the index stays above this immediate support, the technical setup is deemed bullish.
Post consolidation, the FKLI should resume the upside movement.
For now, they made no change to the positive trading bias.
Additionally, RHB said that traders are recommended to hold on to the long positions initiated at 1,565.50 pts or the close of 6 Aug.
To mitigate the trading risks, the trailing-stop threshold is placed at 1,630 pts.
The nearest support remains unchanged at the aforementioned 1,630 pts, followed by the 1,600-pt level.
Meanwhile, the first resistance is still pegged at 1,700 pts and followed by the higher resistance at 1,750 pts.
Maybank Investment Bank (Maybank) said that the KLCI failed to hold onto its early gains amid broad-based profit-taking.
At day’s end, the KLCI declined 3.52pts, or 0.21%, to close at 1,665.30pts.
Leading the decliners were SUNWAY, CIMB and PETDAG.
Market breadth was negative, with losers outnumbering gainers by 675 to 458.
A total of 3.36b shares worth MYR3.17b changed hands.
The market is now data dependent, primarily focusing on inflation and jobs data in the US, which are the two key factors affecting US interest rates.
Technically, Maybank said that they expected the benchmark index to range between 1,655pts and 1,675pts today, with supports at 1,623pts and 1,596pts.
