Again, the research house has maintained ‘short’ positions on FKLI.
Yesterday, the bulls hesitated over breaching the immediate resistance, and closed unchanged at 1,546.50 points. It opened at 1,551 points, then traded within a tight range of 1,551.50 points and 1,544.50 points before closing. The index did not breach the 1,550-point immediate resistance, but managed to chart a “higher low” (1,544.50 points) compared to the previous session’s low of 1,535.50 points. Hence, a mild consolidation is in progress.
Meanwhile, the counter-trend rebound could be extended further if it does push past the immediate resistance in the
sessions ahead. On the flip side, when the momentum eases off and charts a fresh “lower low”, the index could pull
back towards the 1,528-point support. As the index is still below the 200-day SMA line, coupled with immediate resistance
being intact, no changes made to the analysts’ bearish bias.
Traders are advised to stick to the ‘short’ positions initiated at 1,576.50 points (5 May’s close). To control the trading risks, the trailing-stop is at 1,550 points. The immediate support is set at 1,528 points (12 May’s low), followed by 1,518 points or the low of 8 Mar. The immediate resistance is at 1,550 points (24 May’s high), followed by 1,578 points, i.e. the high of 6 May.
