Maintain long positions while adjusting trailing-stop slightly lower. The FKLI closed 24.5 pts weaker at 1,589.5 pts last Friday. At one point, it reached a low of 1,582.5 pts to test the 1,585 support level. Despite the soft performance, it was not sufficient to signal price exhaustion – if this happens, it could mark the end of the index’s upward move that resumed in end-June. Until further negative price actions take place in the coming sessions, we make no change to our 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, we revise our stop-loss to below 1,580 pts.
We revise the immediate support to 1,585 pts, followed by 1,575.5 pts – derived from the low of 20 Jul. Meanwhile the immediate resistance is now pegged at the 1,600-pt round figure, followed by 1,615 pts.
Source: RHB Securities Research - 27 Jul 2020
Created by rhboskres | Aug 26, 2024