The research house has maintained ‘SHORT’ positions on KLCI futures based on the technical analysis on the derivative – flatly bearish.
The FKLI underwent strong selling pressure yesterday, plunging 26 points to close at 1,530 points – recording a 2-month low. It opened on cautious sentiment, gapping down at 1,553 points. After printing the session’s high of 1,558 points, bearish momentum picked up pace and dragged the index towards the session’s low of 1,528 points, before closing – thereby formed a long bearish candlestick. The latest price action has negated the Bullish Engulfing and shows that the bears are back in the driver’s seat.
Negative momentum should follow through in the coming sessions, where the bears may test 1,518 points, then the 1,500-point level. Since the index is still in a correction phase, the research house maintains a negative trading bias.
Traders are advised to stick to the ‘SHORT’ positions initiated at 1,576.50 points, or the close of 5 May. To minimise the
trading risks, the stop-loss is set at 1,578 points. The immediate support is now at 1,518 points – 8 March’s low – followed 1,500 points. Conversely, the immediate resistance remains at 1,556.50 points – 9 May’s high –followed by 1,578 points i.e. the high of 6 May.
