RHB Retail Research

FKLI: Moving Sideways

Publish date: Thu, 25 Nov 2021, 06:37 PM
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RHB Retail Research

Maintain long positions. The FKLI trended sideways, and closed flat yesterday. The index opened at 1,519.50 pts and dropped to the day’s low of 1,517.50 pts. From the intraday low, it climbed towards the day’s high of 1,528 pts. However, the FKLI also retreated in the late afternoon to close at 1,522 pts. The index should continue to consolidate and move sideways until it breaks either 1,537.50 pts or the 1,512-pt boundary. Traders can expect volatility to be muted during this consolidation phase. Pending a breakout movement, we make no change to our positive trading bias until the stop-loss is breached.

Traders should remain in long positions, which were initiated at 1,532 pts or the closing level of 12 Nov. To protect downside risks, the initial stop-loss has been marked at 1,500 pts.

The immediate support stays at 1,512 pts or the low of 11 Nov, followed by 1,505 pts or the low of 5 Oct. On the other hand, the immediate resistance is still at 1,537.50 pts (9 Nov’s high), followed by 1,546.50 pts (3 Nov’s high).

Source: RHB Securities Research - 24 Nov 2021

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