Maintain long positions while moved the trailing-stop to breakeven. The FKLI continued to extend its upward move in the latest session. It formed a white candle which came near to test the immediate resistance of 1,729 pts. Intraday, the index generally move up with the low and high posted at 1,708.5 pts and 1,728.5 pts, before it ended 16.5 pts higher at 1,724 pts. The positive session can be seen as a follow-up from the prior session’s strong rebound from the 50-day SMA area, which was tested multiple times in the past two weeks. Momentum is also picking up as the daily RSI continues to edge higher. Maintain our positive trading bias.

With the bulls clearly in the control without showing any signs of weakness, we continue to recommend traders to stay in long positions. We recommended these positions at 1,707.5 pts, the closing level of 19 Feb. For risk management purposes, the trailing-stop is revised to the breakeven level.

The immediate support is kept at 1,664 pts, which is the low of 2 Jan, while the following support may be found at 1,631.5 pts, the low of 18 Dec 2018. Conversely, the immediate resistance is now set at 1,729 pts, the high of 8 Nov. This is followed by 1,749.5 pts, the high of 17 Oct 2018.

Source: RHB Securities Research - 21 Feb 2019