RHB Research is maintaining ‘short’ positions on KLCI futures.
The FKLI underwent a strong rebound on Tuesday, recouping 17.50 points from the previous bearish session to close at 1,473.50 points. Market opened on a jittery note, as the index gapped down and opened at 1,451.50 points. As the session progressed, the index found its footing at 1,446.50 points and climbed to the day’s high of 1,479 points before the close. As mentioned in a previous note, since the index is trading in the oversold region – evidenced by the RSI indicator – the rebound is within expectations. However, the FKLI has to break above the 1,480-point resistance to extend the rebound towards the 50-day SMA line. The sentiment may shift back to a risk-off one again if it fails to do so. For now, the research house is maintaining a negative bias until the trailing-stop is triggered.
Traders should maintain the short positions initiated at 1,524.50 points (7 June’s close). To manage trading risks, the trailing- stop has been revised downwards to 1,480 points from 1,506 points. The immediate support remains at 1,440 points, followed by 1,420 points. Meanwhile, the nearest resistance is pegged at 1,480 points, followed by 1,500 points.
