Maintain long positions. Yesterday, the FKLI continued its strong momentum after rising above the immediate resistance level to close 13 pts higher. The index opened at a neutral 1,611.5 pts, then moved lower – tapping the low of 1,606.5 pts before buying interest emerged to lift the stock higher towards the close. The FKLI reached its intraday peak at 1,625 pts to close at 1,624 pts. This is in line with our expectation that it will cross above the resistance of 1,612.5 pts. Since the RSI strengthened further near the 60% point, it has increased the possibility of the index breaking past the next resistance level of 1,625 pts. As such, we hold on to our positive trading bias.

Traders should maintain long positions. We initiated these at 1,596 pts, or the closing level of 7 Apr. For risk management purposes, the stop-loss is raised to 1,590 pts.

The support levels are revised to 1,612.5 pts (30 Mar’s high), followed by 1,588 pts. Towards the upside, the immediate resistance level is revised to 19 Mar’s high of 1,625.50 pts, then 1,634.5 pts, or 12 Mar’s high.

Source: RHB Securities Research - 27 Apr 2021