RHB Retail Research

FKLI: Slips Below 1,500-Pt Level

Publish date: Thu, 02 Dec 2021, 05:42 PM
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RHB Retail Research

Stop-loss triggered; initiate short positions. The FKLI bucked the regional peer’s trend, and shed 22.50 pts to settle at 1,496.50 pts – breaching the 1,500-pt psychological level. It opened weaker, at 1,511 pts, then trended downwards to record the session’s low of 1,492.50 pts before closing. In the latest session, the index moved downwards again, and may retrace lower to test the 1,491-pt level. If it manages to rebound and reclaim the 1,512.50-pt level, the bearish breakout would be deemed a false break one. However, as the stop-loss has been triggered, we are now shifting to a negative sentiment.

We closed out the long positions initiated at 1,532 pts or the closing level of 12 Nov, after the stop-loss of 1,505 pts was triggered. Conversely, traders can initiate short positions at the close of 1 Dec, ie 1,496.50 pts. To protect trading risks, the initial stop-loss has been set at 1,528 pts.

The immediate support has been revised to 1,491 pts (16 Aug’s low), followed by 1,477.50 pts or the low of 4 Aug. The immediate resistance is now at 1,512.50 pts (1 Dec’s high), then 1,525.50 pts or the high of 25 Nov.

Source: RHB Securities Research - 2 Dec 2021

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