ZLBT FKLI Views

FKLI Set For Profit Takings Before Next Upside
The index futures contract finally broke its tough resistance of 1552 and traded higher to form a long white candle. Buyers deemed to buy on any retrace to safeguard the support line of 1552. Despite daily RSI poising towards the overbought territory, it is unlikely to pressure the market in the short term. Also, futures has filled the falling gap of Jan 21 and completed the major wshaped recovery span through Jan-May. To the upside, resistance pegged at 1574

FBMKLCI hit its four months high and settled 1% higher, buoyed by regional strength and rally of the utilities giant TNB upon government approval to raise electricity prices. Also, financial counters had kept market buoyant as banking heavyweights Maybank and CIMB announced takeover bid for RHB Cap, which set to become the biggest takeover battle in Malaysia's corporate history. Besides that, Malaysia will be upgraded to Emerging Markets by FTSE effective today. Sentiment likely to turn positive today as traders initiate new position following series of new catalysts in local market..

Strategy

Opportunistic Sell into profit takings near 1562+/-.

Keep a handy cutloss just in case

HAPPY TRADING