The Malaysia stock market turned lower again on Wednesday, one day after snapping the two-day slide in which it had eased not quite 3 points.
At 9.13am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) inched down by 1.30 points to 1,453.36, from Wednesday’s closing of 1,454.66.
The key index opened 0.16 points higher at 1,454.82.
RHB Retail Research stated in a note on Thursday that KLSE reversed its recent bullish reversal yesterday as it fell 8.50 pts to close at 1,433 pts, ie yesterday’s low.
The index opened at 1,441.50 pts and then fell lower throughout the session towards the 1,431-pt low before the close.
The negative price action that closed at the previous session’s low indicates that the recent rebound from 1,423 pts has eased.
The index is likely to pull back towards the 1,423-pt immediate support in the coming sessions.
For the medium-term outlook, the index may trade range-bound between the 1,423-pt support and 1,445-pt resistance.
The 1,445 pts or Tuesday’s high will be the critical point for resumption of bullish momentum for the short-term period.
As for now, the research house keeps to its long positions unless the stop-loss level is breached.
Traders are advised to maintain the long positions initiated at 1,441.50 pts or the closing level of 7 Mar.
To manage the trading risks, the initial stop-loss threshold is fixed at 1,423 pts, ie the immediate support.
The immediate support is marked at 1,423 pts – 1 Mar’s low – and followed by the 1,400-pt whole number.
Conversely, the immediate resistance is lowered to 1,445 pts or 7 Mar’s high and followed by 1,500 pts.
