The FKLI staged a technical rebound yesterday, jumping 12.50 points to settle at 1,554.50 points. Initially, it gapped down to open at 1,540.50 points and retreated to the day’s low of 1,534.50 points. Not long after, positive momentum emerged to lift the index higher, touching the day’s high of 1,555 points before the close and printing a Bullish Engulfing reversal pattern.
If the bullish momentum extends, it may breach the 1,556.60-point resistance and travel towards the higher resistance at 1,578 points, RHB Research said
However, it said that it thinks the 1,556.50-point level will pose a strong resistance. In the event the bullish momentum decelerates, the index will correct towards 1,534.50 points again.
It said that for now, the stop-loss threshold remains intact, hence, we stay with our negative trading bias. We recommend traders to keep the short positions, which were initiated at 1,576.50 points, or the close of 5 May. To mitigate the trading risks, the stop-loss is set at 1,578 pts.
RHB said that the immediate support is revised to 1,534.50 points (10 May’s low), followed by 1,518 points, or the low of 8 Mar. On the other hand, the immediate resistance is pegged at 1,556.50 points (9 May’s high), and followed by 1,578 points (6 May’s high)
