With strong resistance level at 1,600, the research house is maintaining ‘SHORT’ positions on the KLCI futures.
The FKLI continued its positive rebound as it recouped its intraday losses to close 1 point higher at 1,599 points yesterday. It opened at 1,598 points, then retreated to the day’s low of 1,591 points before rebounding northwards to hit the day’s high at 1,599.5 points before the close. Technical analysis speaking, the small white body candlestick with long lower shadow implies the buying momentum emerged during the late trading session yesterday and is expected to follow through in the coming sessions – towards breaching the 1,600-point psychological resistance.
If that happens, the bullish momentum is expected to persist towards the higher resistance pegged at 1,620 points in the medium term. Since it has yet to breach the stop-loss level, the research house is holding on to their negative trading bias.
Traders are recommended 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.
