RHB Retail Research

FKLI: Breaching Above 1,600-Pt Psychological Level

Publish date: Wed, 16 Feb 2022, 05:35 PM
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RHB Retail Research

Maintain long positions. The bulls reclaimed the 1,600-pt level amid strong momentum, and the FKLI jumped 28 pts to close at 1,608.50 pts yesterday. The benchmark index initially started off the night session at 1,583 pts. Once the morning session began, strong buying interest lifted the index to print the day’s high of 1,610.50 pts before closing – forming a long white candlestick. Despite the bears’ attempt to take profit, the bulls remained in the driver’s seat. As long as the FKLI stays above the immediate support of 1,581.50 pts, there should still be room for an upside – so the index may test 1,620 pts, then 1,650 pts. In the event strong selling activities take place in the near future, the 1,558-pt level should provide a strong downside support. With no signs of exhaustion from the bulls, we maintain our positive trading bias.

We recommend that traders stick to the long positions initiated at 1,527.50 pts, or the close of 3 Feb. To protect the downside risks, trailing-stop has been adjusted higher to 1,558 pts, from 1,541 pts.

The immediate support rises to 1,581.50 pts (15 Feb’s low), followed by 1,558 pts which was the low of 11 Feb. Towards the upside, the first resistance is at 1,620 pts, then 1,650 pts.

Source: RHB Securities Research - 15 Feb 2022

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