Maintain long positions, as the rebound has yet to show signs of topping. The FKLI tested the 1,350-pt immediate resistance with an intraday high of 1,352 pts – before retracing to narrow its gains to 4 pts at 1,326 pts. Despite not being able to close above said immediate resistance, we are not seeing clear signs of price rejections either. In the absence of a price signal to mark a possible top for the counter-trend rebound, which has been in development since the low of 1,171 pts on 17 Mar, we are keeping our positive trading bias.

As the rebound has yet to flash out a top, we recommend traders stay in long positions. We initiated these at 1,282.5 pts, ie the closing level of 24 Mar. For risk management purposes, a stop-loss can be placed at the breakeven mark.

The immediate support is maintained at 1,310 pts, followed by 1,290.5 pts – both were derived from 25 Mar’s candle. Towards the upside, the immediate resistance is expected at 1,350 pts and followed by 1,370 pts.

Source: RHB Securities Research - 30 Mar 2020