At 9.16am the FBMKLCI rose (green) / dipped (red) -14.03 points to open at 1642.78. The Kuala Lumpur Composite Index now rests just above the 1,655-point plateau although it figures to head south again on Wednesday.
According to RHB Research, maintain long positions. The FKLI experienced positive price movement during the first trading session of October, rising by 3.50 points to close higher at 1,657 points. The index initially opened at 1,653 points and, after touching a session low of 1,647 points, rebounded to reach a session high of 1,659 points before closing. This recent upward movement indicates that bullish momentum is building once again. We anticipate further positive movement, which could retest the immediate resistance at 1,675 points. Should this level be breached, it would enhance the technical outlook and push the FKLI higher. Conversely, if the index enters a correction, support may be found near the 50-day SMA line. At present, the FKLI is still trading above the 1,630-point trailing stop, and the technical setup remains favourable. Therefore, we maintain a positive trading bias.
Traders are advised to keep long positions initiated at 1,565.50 points, which was the closing level on 6 August. To manage risk, the trailing-stop threshold is set at 1,630 points. Immediate support is noted at 1,630 points, followed by 1,600 points. On the upside, the nearest resistance is at 1,675 points, with the next target being the 1,700-point level.
The FCPO extended its consolidation phase yesterday, recovering RM11 to close at RM4,006. The commodity opened trading at RM4,017 and fluctuated between a high of RM4,046 and a low of RM3,994 before settling at RM4,006, forming an Inside Bar pattern. This price action indicates neutral market sentiment, with selling pressure easing. Although the RSI is trending lower, reflecting a slowdown in bullish momentum, there remains a possibility that the FCPO could attempt an upward movement. If it surpasses the RM4,050 resistance level, it could boost market sentiment and attract fresh buying interest. Conversely, if selling pressure re-emerges, the FCPO might retreat towards the 200-day SMA line. For now, the commodity is trading above the RM3,875 support level, and the technical outlook remains bullish. As such, we maintain a positive trading bias.
Traders are advised to retain the long positions initiated at the close on 20 September, or at RM3,947. To manage trading risks, a stop-loss is set at RM3,875. Immediate support is at the RM3,875 level, followed by RM3,700. On the upside, the first resistance is at RM4,050, with the next target at RM4,200.
