Maintain long positions. The FKLI saw the bulls not ready to give up yet as they struggled to retain the position above the immediate support. The index rose 0.50 pts to settle at 1,508.50 pts. Initially, the index gapped down and opened weaker at 1,505.50 pts. It managed to establish its foothold at the day’s low of 1,500 pts, but then rose to test the day’s high of 1,514.50 pts before the close. As the November futures contract is expiring on 30 Nov, expect volatility to pick up again during Tuesday’s session. As long as the index remains above the immediate support, the bullish posture remains. Otherwise, breaching the immediate threshold would see selling pressure drag the index towards August’s low. At this stage, we maintain a positive trading bias until the stop-loss is triggered.

We recommend traders hold on to the long positions initiated at 1,532 pts, or the closing level of 12 Nov. To protect the downside risks, the stop-loss has been set at 1,505 pts, or the immediate support.

The immediate support is sighted at 1,505 pts – 5 Oct’s low, followed by 1,477.50 pts, or the low of 4 Aug. Meanwhile, the immediate resistance remains at 1,525.50 pts (25 Nov’s high), followed by 1,537.50 pts (9 Nov’s high).

Source: RHB Securities Research - 30 Nov 2021