ZLBT Weekly Outlook >>> The FKLI

FKLI May Expire Higher This Week

THE FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures April contract on Bursa Malaysia Derivatives closed lower at 1,522.5 with an open interest of 19,667 contracts last week.

The forecast consolidation took place last week with the April contract testing the upper resistance line when it reached a high of 1,539. However, when the market closed last Friday, consolidation pressure re-emerged as the spot contract failed to end above the resistance line again.


Most of the daily technical indicators remain in the neutral region. The daily Relative Strength Index and the Commodity Channel Index indicators are in this territory after reflecting last week's pullback.


Over the shorter term, the consolidative trend remains with an upside bias despite the mild correction in the market. The primary trend is still broadly positive and the current development may continue given the defensiveness when price drop closer to the support at the 1,500 line.


Although there was countering pressure when the spot contract reaced the 1,540 resistance line, the spot contract's price momentum may re-test this level this week as it attempts a rebound from the weekly mid-Bollinger band. With the weekly indicators remaining in neutral territory there could be a revival of bullish trades in the middle-term perspective.


Tactically, the spot contract may continue with its consolidative trading with upside bias this week. Notwithstanding the volatility on the daily chart, the smoothened weekly chart looks more promising. With support intact at the 1,494 level the immediate resistance is located at 1,540.

Technical reports

The Moving Average Convergence Divergence indicator remains positive with the faster above the signal line. Both lines remain at the positive region.

The daily Relative Strength Index closed at the neutral.

The daily Commodity Channel Index finished at the neutral.

HAPPY TRADING & GOODLUCK2ALL