The Bears Are Looming on FKLI: RHB Research

The research house is maintaining ‘SHORT’ positions on KLCI futures.

The FKLI experienced strong selling pressure on Monday, retreating 18 points to close lower at 1,584.50 points – breaching the 50-day SMA line. Sentiment was negative throughout the session, with the index gapping down to open at 1,593 points and falling to the day’s low of 1,584 points before the close. The long bearish candlestick is an indication that selling pressure persisted and the bears had the upper hand. The latest session also reaffirms the 1,603-point level has become a strong resistance. If the negative momentum follows through, the index may breach below the 1,578-point support and correct towards the 1,543.50-point level.

Towards the downside, the research house believes the 200-day SMA line will act as a strong support. Expect a technical rebound to happen near the long-term moving average line. For the immediate term, since the RSI is rounding down, the negative momentum looks to be picking up pace again. As such, research house is retaining its bearish trading bias.

Traders are recommended to stick to the short positions initiated at 1,578 points, or the closing of 18 April. To minimise the trading risks, the initial stop-loss is set at 1,603 points. The immediate support is adjusted to 1,578 points – 18 April’s low – followed by the subsequent support at 1,543.50 points, or 15 March’s low. The first resistance is pegged at 1,594.50 points (25 April’s high), followed by 1,603 points.

Previous articleBargain Activities May Emerge But Upside On FBM KLCI May Be Capped At 1600
Next articlePayd Raises RM 7.5 Million In Seed Funding Led By IFS Capital

LEAVE A REPLY

Please enter your comment!
Please enter your name here