Maintain long positions. Buying interest emerged at the last hour of trading yesterday, and the FKLI closed 8.50 pts higher, at 1,623.50 pts. Yesterday, the index opened at 1,616.50 pts, then dipped to the day’s low of 1,614 pts. It stayed within the negative region for most of the session, until bulls lifted it towards the day’s high of 1,624.50 late in the session. The RSI indicator stayed above the 50% threshold, indicating that the positive momentum remains intact. As such, the index may retest the immediate resistance of 1,634.50 pts. Meanwhile, 50-day SMA line, which was curving up recently, will continue to provide downside support. Since the technical indicators lean towards the upside, we are maintaining a positive trading bias.

We recommend that traders stay in long positions, which were initiated at 1,591 pts, or the closing level of 5 Mar. To manage risks, a stop-loss is set below 1,589 pts.

The support levels are revised to 12 Mar’s low of 1,610 pts, followed by 1,602 pts. Towards the upside, the resistance levels are at 12 Mar’s high of 1,634.50 pts, followed by 14 Jan’s high of 1,649 pts

Source: RHB Securities Research - 17 Mar 2021