Maintain long positions as the rebound is not showing signs of exhaustion yet. The FKLI continued to maintain its counter-trend rebound yesterday, settling 20 pts higher, at 1,347.5 pts. The low was posted at 1,337.5 pts. The positive session can be interpreted as a positive signal that the counter-trend rebound that started from the low of 1,171 pts on 17 Mar is still in place. Until we see signs of a possible top to the said rebound, we are maintaining our positive trading bias.

With no sign for a reversal, traders are advised to remain 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 below 1,320 pts.

We revised the immediate support to 1,320 pts, the latest low. This is followed by 1,300 pts. Moving up, the immediate resistance is at 1,350 pts, followed by 1,370 pts.

Source: RHB Securities Research - 1 Apr 2020