Maintain long positions as the bulls are showing good control. The FKLI closed 26 pts stronger at 1,615.5 pts yesterday – crossing above the 1,600-pt and 1,515-pt resistance points. Based on the index’s price actions over the past two weeks, the latest positive performance likely indicates that the index is ready to extend its uptrend to chart a new high. Premised on this, we maintain our positive trading bias.

As it is highly possible that the index may be able to extend its uptrend in the coming sessions, 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 stoploss to below 1,580 pts.

We revise the immediate support to 1,600 pts, followed by 1,580 pts. On the other hand, the immediate resistance now pegged at 1,621.5 pts – the high of 14 Jul, followed by 1,630 pts.

Source: RHB Securities Research - 29 Jul 2020