The research house has maintained ‘SHORT’ positions on the futures of KLCI.
The FKLI managed to retain its position above the 50-day SMA line, despite facing mild selling pressure. Yesterday, the index closed at 1,596.50 points after rebounding 10.50 points from the previous session. The latest bullish candlestick indicates that buying momentum has started to outpace the negative momentum while the index continues to consolidate sideways.
In the event the positive momentum extends and breaches the 1,603-point immediate resistance, the index will travel towards the next resistance pegged at the 1,620-point level. However, the research house still believes that strong selling pressure should emerge near the immediate resistance. As long as the index continues to hover below the 1,603-point level, would the research house hold on to their bearish trading bias.
Traders are advised to retain the ‘SHORT’ positions, which were initiated at 1,578 points, or the closing of 18 April. To minimise the trading risks, the initial stop-loss is placed at 1,603 points. The first support stays at 1,578 points (18 April’s low), followed by 1,543.50 points (15 March’s low). On the upside, the nearest resistance is at 1,603 points, followed by 1,620 points.
