‘SHORT’ positions being maintained by the research house on the KLCI futures, with negative trading bias until trailing-stop is breached.
In tandem with the weakness seen by its regional peers, the FKLI shed 6.50 points yesterday and closed at 1,547.50 points, marginally below the 200-day SMA line. It opened at 1,550.50 points, then fell to the day’s low of 1,539 points before rebounding to the session’s high of 1,554.50 points. This latest weak closing indicates that the index has ceded the bulk of gains made in the previous two sessions, and the bears are now in the driver’s seat. With the RSI trending lower and as trading momentum softens, the uptrend may be capped at the 1,556.50-point resistance. If selling pressure increases, the FKLI may drift towards the nearest support of 1,528 points. It also has to break above the immediate resistance to overcome the bearishness. Hence, the research house will maintain a negative trading bias until the trailing-stop is breached.
Traders of FKLI are advised to keep to the ‘SHORT’ positions initiated at 1,576.50 points, or the close of 5 May. To minimise
trading risks, the trailing-stop is revised to 1,558 points from 1,563 points. The immediate support remains at 1,528 points – 12 May’s low – followed by 1,518 points or the low of 8 March. Meanwhile, the immediate resistance is still at 1,556.50 points – 9 May’s high – followed by 1,578 points, i.e. the high of 6 May.
