RHB Research has maintained ‘SHORT’ positions on the KLCI futures.
The FKLI recouped losses from the previous session yesterday, and jumped 20 points to settle at 1,598 points. It opened with a gap-up, at 1,584 points, then climbed higher on strong momentum to print the day’s high of 1,598.50 points before the close, thereby registering a long bullish candlestick. The bullish candlestick has engulfed the previous session, which indicates that the bulls are on the verge of regaining control.
If the momentum follows through and the index breaches the 1,600-point psychological resistance, it should travel towards the higher resistance pegged at 1,620 points. Before that happens, the research house reasonably expects strong selling pressure to emerge near the 1,600-point level. Hence, it holds on to a
negative trading bias until the stop-loss is breached.
The research house recommends that traders to maintain the ‘SHORT’ positions initiated at 1,578 points or the close of 18 April. To minimise the trading risks, the initial stop-loss is set at 1,603 points. The immediate support is marked at 1,575.50 points (29 March’s low), followed by 1,543.50 points or the low of 15 March. The first resistance is at 1,600 points, then 1,620 points.
