Maintain long positions. The FKLI saw a doji yesterday. The index opened at 1,596 pts, then swung between the 1,606.5-pt high and 1,588-pt low to conclude the session at 1,595 pts, marking a dip of just 1 pt. Although it failed to hold on to the area above 1,600 pts, it still managed to stay above the 50-day SMA line. As long as the index remains above both the 50-day and 200-day SMA lines, it should still be on an uptrend. The FKLI may consolidate sideways before attempting to cross the 1,600-pt physcological level again. Since the probability of a downside risk emerging is slim, we are keeping a positive trading bias.

We recommend that traders stick to long positions, which were initiated at 1,596 pts, or the closing level of 7 Apr. To manage risks, the stop-loss is set below 1,570 pts.

The immediate support level remains at 1,580 pts, followed by 6 Apr’s low of 1,570.50 pts. Towards the upside, the immediate resistance stays at 30 Mar’s high of 1,612.5 pts, followed by 1,625 pts.

Source: RHB Securities Research - 9 Apr 2021