Maintain long positions. The FKLI ended Thursday's session slightly lower – it eased 4 pts to close at 1,821.5 pts, which is also near the session's low of 1,821 pts. The high was posted at 1,828.5 pts. As mentioned in our prior report, the latest two sessions' price actions are likely to suggest a minor price consolidation taking place. This comes after the index broke away from its multi-week consolidation phase on 27 Aug. The overall positive tone is also supported by the fact that the index is still trading above the 200-day SMA line and immediate support of 1,810.5 pts. Hence we keep to our near-term positive trading bias.

As we are not any signals to suggest a deeper consolidation is developing at this juncture, we continue to advise traders to maintain their long positions. We initiated these positions at 1,812 pts, which is the closing level of 27 Aug. For risk management, a stop-loss below 1,766.5 pts is advisable.

We continue to peg the immediate support at 1,810.5 pts – the highs of 9 and 10 Aug. This is followed by 1,766.5 pts, the low of 31 Jul. Towards the upside, the immediate resistance is expected at 1,844.5 pts, the high of 23 May. The following resistance is at 1,876.5 pts, the high of 14 May.

Source: RHB Securities Research - 3 Sept 2018