Maintain long positions while moving up trailling-stop. The FKLI crossed above the 1,600-pt round figure as it settled 9.5 pts higher at 1,605 pts. This is a positive follow-up after the index brached above the 6 Jun’s high of 1,586.5 pts in the prior session. We note that the RSI reading is not too distant from the overbought reading. However, until price reversal signals appear, the assumption for the index to extend its upward move remains intact. Maintain our positive trading bias.

We advise traders to stay in long positions. We initiated these at 1,530 pts – the closing level of 2 Jun. To manage risks, a stop-loss can now be set below 1,590 pts.

The immediate support is revised to 1,590 pts, followed by 1,580 pts – both are 10 Jul’s price points. Meanwhile, the immediate resistance is now eyed at 1,620 pts followed by 1,635 pts

Source: RHB Securities Research - 14 Jul 2020