Maintain long positions. The FKLI advanced 25.5 pts to settle at 1,614 pts – above the previous immediate resistance of 1,600 pts and within striking distance to test the 1,615-pt mark. The positive performance came after the index underwent a minor sideways consolidation in the prior three sessions. It also indicates that the 17 Jul “Bullish Engulfing” formation is still firmly in place, and that the index’s uptrend is firmly in place. Premised on this, we are maintaining a positive trading bias. We advise traders to stay in long positions. We initiated these at 1,607 pts, the closing level of 17 Jul. To manage risks, a stop-loss can be placed below 1,585 pts. We now expect the immediate support at 1,600 pts, followed by 1,585 pts. The overhead resistance is pegged at 1,615 pts, followed by 1,621.5 pts – the high of 14 Jul

Source: RHB Securities Research - 24 Jul 2020