Last Friday, the FKLI extended the bearish movement for the seventh consecutive session, declining 17.50 points to close at 1,490.50 points – registering a new low in 2022. It opened at 1,506 points.
After falling below, the 1,500-point level, it kept trending lower amid negative sentiment, hitting the session’s low of 1,488 points before closing, RHB Research said
It said that the latest bearish candlestick showed that the bears are still firmly in control of the correction, while the index has not found an interim base yet. The downward movement should continue – until at least it forms a bullish reversal pattern or a candlestick with a long lower shadow.
Meanwhile, It said that since the RSI is trending into the oversold region, on top of the FKLI trading at a distance away from both the 50-day and 200-day SMA lines, expect a technical rebound soon to test the 1,500-point psychological resistance.
Conversely, since the bearish momentum still in play, we maintain our negative bias. Traders should stick to the short positions initiated at 1,524.50 points (7 Jun’s close).
To minimise the trading risks, the stop-loss has been revised to 1,524 points from 1,550 points. The immediate support is now at 1,480 pts, followed by 1,460 points. Meanwhile, the first resistance is at 1,500 points, followed by 1,518 points or the high of 1 Jun
