Maintain long positions as the bulls are pressing ahead. The FKLI performed positively and at the closing, it decisively crossed above the previous immediate resistance of 1,656.5 pts. The index generally trended higher for the whole session, with the low and high recorded at 1,653 pts and 1,669 pts, before closing 21.5 pts higher at 1,668.5 pts. The positive session also signals a breakout from the previous minor consolidation phase. This implies the counter-trend rebound that started from the 14 May’s “Piercing Line” formation is still extending. As such, we keep to our positive trading bias.

As the bulls are still showing firm dominance over the rebound ie no signs of possible price reversal spotted, we continue to recommend traders to stay in long positions – initiated at 1,619.5 pts. A stop-loss can now be placed at below 1,651 pts, the high of 18 Jun.

We revise the immediate support to 1,633.5 pts, which was the low of 17 Jun. This is followed by 1,613 pts, the high of 13 May. Moving up, the immediate resistance is now set at 1,694.5 pts, the high of 19 Mar. This is followed by 1,730, near the high of 21 Feb.

Source: RHB Securities Research - 20 Jun 2019