RHB Retail Research

FKLI: Bears Are Taking a Breather

Publish date: Thu, 06 Jan 2022, 04:53 PM
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RHB Retail Research

Maintain long positions. Selling pressure on the FKLI tapered yesterday, and it was averted from charting a new lower low, rebounding 2.00 pts to close at 1,544.50 pts. The index opened at 1,542 pts then oscillated between 1,548.50 pts and 1,540 pts before closing. The latest price action shows that the negative momentum failed to follow through, while the index was attempting to build an interim base. If the FKLI manages to break past the 1,550-pt level, it may climb above the 200-day SMA line to test the higher hurdle of 1,560 pts. In the event the negative momentum picks up pace again, the 1,531-pt level should provide a strong support. As of now, we stick to a positive trading bias.

Traders should remain in the long positions initiated at 1,500.50 pts, ie the close of 22 Dec. To manage trading risks, the stop-loss has been set at 1,531 pts.

The nearest support is at 1,531 pts – 29 Dec’s low – followed by 1,512.50 pts or the high of 23 Dec. Towards the upside, the immediate resistance has been revised to 1,550 pts, followed by 1,560 pts.

Source: RHB Securities Research - 6 Jan 2022

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