RHB Retail Research

FKLI: 1,500-Pt Resistance Remains Intact

Publish date: Tue, 14 Dec 2021, 08:35 AM
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RHB Retail Research

Maintain short positions. The FKLI failed to break past the 1,500-pt psychological level on Monday despite rising 11.50 pts to close stronger at 1,497.50 pts. The index initially started off at 1,489 pts and jumped to test the 1,504-pt day high. The bullish momentum did not manage to follow through, retracing lower in the afternoon and closing at 1,497.50 pts. The latest session reaffirmed that the 1,500-pt level has became a tough barrier. With the RSI still languishing below the 50% level, the FKLI may continue to consolidate sideways in the coming sessions. In the event the index pierces through the threshold, we expect it to travel towards the 1,512.50-pt level. At this stage, we hang on to our negative trading bias until the stop-loss mark is breached.

Traders should stick with the short positions initiated at 1,496.50 pts or the close of 1 Dec. To mitigate the trading risks, the stop-loss threshold is placed at 1,517 pts.

The immediate support remains at 1,477.50 pts – 4 Aug’s low – and is followed by the 1,450-pt whole number. Conversely, the nearest resistance is pegged at 1,500 pts and followed by the higher resistance at 1,512.50 pts, ie the high of 1 Dec.

Source: RHB Securities Research - 14 Dec 2021

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