Profit-takings near the 1,556.50 resistance level, the research house is maintaining ‘SHORT’ positions on the KLCI futures.
The FKLI was not able to cross above the 200-day SMA line last Friday, even though it gained 2 points to close at 1,548.50 points. It opened at 1,547.50 points and, at one point, rose to test the session’s high of 1,557.50 points. However, profit-taking activities near the 200-day SMA line prevented the index from moving higher, and dragged it back to the session’s low of 1,545 points before closing.
The candlestick with a long upper shadow showed that the bears still had a technical advantage. As the 1,556.50-point resistance remains intact, the FKLI has yet to form a fresh “higher high” and should continue to consolidate below the immediate threshold. Meanwhile, if selling pressure increases, it may retrace towards 1,528-point support. For now, the research house will maintain a negative trading bias until the trailing-stop is triggered.
Traders of KLCI futures are advised to stick to the short positions initiated at 1,576.50 points, or the close of 5 May. To mitigate trading risks, the trailing-stop is set at 1,558 points. The immediate support stays at 1,528 points – 12 May’s low – followed by 1,518 points or the low of 8 March. Conversely, the immediate resistance is pegged at 1,556.50 points – 9 May’s high – followed by 1,578 points i.e. the high of 6 May.
