Maintain long positions. The bullish momentum that started on Wednesday continued into yesterday, where the FKLI closed 7.50 pts higher, 1,605.50 pts. It opened at 1,597 pts, then tested the day’s high of 1,608.50 pts. As we previously mentioned, since the RSI is curving higher, the bullish momentum may extend further to test the resistance of 1,612.50 pts. Furthermore, the 50-day SMA line is trending higher, thereby lending support to the index. As long as it stays above 1,588 pts or the 50-day SMA line, the FKLI should stay in an uptrend. As such, we maintain a positive trading bias.

We recommend that traders stay in 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 1,588 pts.

The immediate support remains at 1,588 pts, followed by 6 Apr’s low of 1,570.50 pts. Towards the upside, the immediate resistance is at 30 Mar’s high of 1,612.5 pt, followed by 1,625 pts.

Source: RHB Securities Research - 16 Apr 2021