RHB Research has maintained ‘SHORT’ positions on KLCI futures.
The FKLI continued falling for a sixth consecutive session yesterday, declining 13.5 points to settle at 1,508 points – crossing below the immediate support of 1,518 points. After the index opened at 1,521 points and briefly touched the 1,524-point high, selling pressure kicked in to dominate the rest of the session. It fell towards the 1,506-point intraday low before the close. The latest negative price action signals that the bears continue to dominate the negative territory, and the FKLI is expected to fall further towards 1,500 points, followed by the 1,480-point mark. In line with the further weakening of the RSI towards the 30% level, the uptrend reversal is not expected to happen in the coming sessions, as we have yet to see a divergence signal. Hence, the research house is retaining its negative bias.
Traders should maintain the short positions initiated at the closing of 7 June or 1,524.50 points. To mitigate the
trading risks, the stop-loss threshold is revised lower to 1,550 points. The immediate support is marked at the 1,500-point round figure and followed by 1,480 points. The immediate resistance is revised lower to 1,518 points – 8 March’s low – and followed by 1,550 points, which was the high of 3 June.
