With negative trading bias, the research house is sticking to their “short” positions KLCI futures.
The FKLI continued its strong rebound yesterday, jumping 9.5 points to close at 1,552.5 points – crossing above the 50-day average line, towards the 1,556.50-point immediate resistance. The index initially opened higher at 1,546.50 points, and went on to touch the day’s 1,554.50-point high before retracing to close at 1,552.5 points. The bullish candlestick, which closed above the 50-day SMA line, signals the start of an uptrend reversal – supported by a “higher low” bullish pattern. However, a breach of the 1,556.50-point immediate resistance level is needed for a “higher high” bullish structure to appear – confirming the uptrend reversal movement. If this happens, momentum may persist towards the 1,578-point resistance level. Note that the RSI has returned to above 40%, and is poised to stage an upside movement.
As the index has yet to form a “higher high” or bullish reversal pattern, thus the research house is sticking to their negative trading bias.
Traders are advised to retain the short positions initiated at 1,576.50 points, or the close of 5 May. To manage the trading
risks, the stop-loss is placed at 1,563 points. The immediate support is fixed at 1,518 points – 8 March’s low – followed 1,500 points. Meanwhile, the immediate resistance stays at 1,556.50 points – 9 May’s high – followed by 1,578 points or the high of 6 May.
