Bursa Malaysia on Thursday snapped the two-day winning streak in which is it had collected almost 10 points or 0.6 percent.
The Kuala Lumpur Composite Index now rests just above the 1,670-point plateau although it’s expected to bounce higher again on Friday.
At 9.15am, the FBMKLCI dipped -2.73 points to open at 1,668.59.
RHB Retail Research (RHB) in a note today (Sept 27) said the FKLI recorded a gain of 3 pts to close at 1,670.50 pts despite facing selling pressure on Thursday.
Yesterday, the index opened at 1,668 pts.
It traded in a narrow range of 1,674.50 pts and 1,664 pts before closing at 1,670.50 pts.
Although the volatility is low, the bulls still own the technical upperhand since the index printed a fresh “higher high” closing.
RHB said they observed the RSI is moving sideways, showing the bullish momentum is slowing down.
The index is likely to extend the horizontal movement for the coming sessions.
Post consolidation, expect the FKLI to resume its upside movement.
However, should the selling pressure increase, the index may find support near the 50-day SMA line.
During this consolidation phase, they will retain the positive trading bias.
Traders should stay on the long positions initiated at 1,565.50 pts (the close of 6 Aug).
To mitigate the trading risks, the trailing-stop threshold is fixed at 1,630 pts.
The nearest support is marked at 1,630 pts, followed by 1,600 pts.
Conversely, the first resistance is eyed at 1,700 pts, followed by the higher resistance at 1,750 pts.
