The Kuala Lumpur Composite Index (FBM KLCI) opened slightly higher on Monday, but remained range-bound due to the expected consolidation after a strong bullish performance in the previous week. Investors are cashing in on the recent rally, which has taken the index to overbought levels of trading. External headwinds from escalating tensions in the Middle East and volatile energy prices are likely to intensify market pressure.
KUALA LUMPUR: The FBM KLCI opened slightly higher on Monday but remained range-bound as it is expected to consolidate following the previous week's strong gains.
With no sign of a permanent Middle East deal in the horizon, investors are cashing in on the recent rally, which has taken the blue-chip FBM KLCI to overbought levels of trading. At the opening bell, the market barometer was up 5.94 points to 1,754, although any further advance was capped by selling pressure.
TA Securities said the index is expected to remain in a profit-taking, consolidation phase in the near term as the short-term momentum indicators ease from overbought levels and trend signals stay muted.
"External headwinds are likely to intensify the pressure, with investors remaining highly sensitive to developments in the Middle East crisis, where persistent tensions are driving volatility in energy prices and heightening inflation risks. It added that market participants are also anticipated to adopt a cautious, wait-and-see stance ahead of the upcoming summit between US President Donald Trump and Chinese President Xi Jinping.
However, the research firm noted that weekly indicators continue to lean bullish, suggesting that the medium-term trend retains a positive bias despite near-term consolidation.
"As for the index, immediate support remains at the 1,700 psychological level, with stronger support coming from the March 2026 low , followed by the 76.4%FR . Meanwhile, key overhead resistance will be the 138.2%FP , followed by tougher upside hurdles at the 150%FP and 161.8%FP ahead.
"gaining four sen to RM1.27.adding 11 sen to RM4.59 and SD Guthrie climbing seven sen to RM6.13.
FBM KLCI Kuala Lumpur Composite Index Range-Bound Consolidation Rally Period Oversold Levels Of Trading Middle East Deal External Headwinds Escalating Tensions Volatile Energy Prices Volatile Energy Sector Inflation Risks Summit Between US President Donald Trump And C Tightening Of Policy Rising Rates Forming A Bear Market Falling Trend Psychological Level Medium-Term Trend Medium-Term Perspective Weekly Indicators Trend Signals Short-Term Momentum Indicators Persistent Tensions Are Increasing The Pressur Persistent Tensions Are Heightening Inflation
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