Following a strong profit-taking yesterday, the research house has initiated ‘SHORT’ calls on KLCI futures as stop-loss triggered.
The FKLI experienced sharp profit taking on the first trading session in May, retreating 22.50 points to settle weaker at 1,576.50 points. The index initially started off on a positive note at 1,604.50 points. After touching the day’s high of 1,612.50 points, selling pressure brought it lower to reach 1,573.50 points before the
closing. The latest price action has erased the gains made in the previous week, closing at a 1-month low. The index also slipped below the 50-day SMA line, and formed a fresh “lower low”. The bearish candlestick indicates that the bears are back in control now.
Since the index has fallen below the stop-loss point, the research house has shifted to a negative trading bias.
They closed out the long positions initiated at 1,604 points, or the closing of 29 April after the stop-loss at 1,578 points was breached. Conversely, initiate short positions at the closing of 5 May, i.e. 1,576.50 points. To mitigate the trading risks, the initial stop-loss is set at 1,605 points.
The immediate support is marked at 1,566.50 points – 25 February’s low – followed by 1,543.50 points, which was 15 March’s low. The immediate resistance is revised to 1,591 points – 22 April’s low – followed by 1,605 points.
