Although the FKLI’s bears are taking a short breather, ‘SHORT’ positions are still maintained by the research house on KLCI futures.
The FKLI attempted to form an interim base after selling pressure moderated on Wednesday. The index initially opened stronger at 1,531.50 points. After moving between 1,527 points and 1,537 points, it closed at 1,532.50 points – recouping 2.50 points from the previous bearish session. Although the index has managed to form a “higher low”, the bearish structure remains intact. The FKLI has to climb above at least the 200-day SMA line to end the correction phase. As long as it stays below the long term moving average line, the bears may drag the index lower again.
Since the index is trading below the 200-day SMA line, coupled with the immediate resistance still intact, the research house is keeping to their bearish trading bias.
Traders are advised to retain the short positions initiated at 1,576.50 points, or the close of 5 May. To control the trading risks, the trailing-stop is placed at 1,558 points. The immediate support remains unchanged at 1,528 pts (12 May’s low), with the lower support set at 1,518 points, or the low of 8 March. Meanwhile, the immediate resistance is kept at 1,556.50 points (9 May’s high), followed by 1,578 points, which was the high of 6 May.
