RHB Retail Research

FKLI: Strong Rebound From The Support Level

Publish date: Wed, 01 Dec 2021, 05:22 PM
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RHB Retail Research

Maintain long positions. The FKLI underwent a strong rebound on Tuesday, and climbed 7.50 pts to close at 1,516 pts. Initially, the index opened at 1,510.50 pts and jumped higher during the early session. Then, mild profit-taking activities took over in the afternoon. At the eleventh hour, the buying momentum emerged again – lifting the index to the intraday high of 1,519.50 pts before the close. The index managed to stay above the immediate support of 1,505 pts, and attempted to test the immediate resistance. If the momentum is extended, it may cross above the 1,525.50-pt level. Otherwise, the FKLI should consolidate along the immediate support point. As long as it trades above the immediate support, we make no change to our positive trading bias.

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

The immediate support stays 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 unchanged at 1,525.50 pts (25 Nov’s high), followed by 1,537.50 pts or the high of 9 Nov.

Source: RHB Securities Research - 1 Dec 2021

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