RHB Research maintains “short” positions.
The FKLI experienced another bearish session on Wednesday, retreating 18.50 points from the previous session to close at 1,455 points. The index started off at 1,472 points. It bucked its regional peers to correct towards the 1,449-point session low before closing in negative territory. As mentioned in our previous note, if the FKLI fails to break past the 1,480-point resistance, a resumption of the correction is expected. Hence, the index may trend downwards to test 1,440 points, followed by the 1,420-point level. This correction will continue until we observe either a rejection candlestick with long lower shadow or a bullish reversal candlestick. Meanwhile, strong resistance has formed at 1,480 points. Since the bearish momentum remains in play right now, the research house makes no change to its negative bias.
Traders are advised to retain the short positions initiated at 1,524.50 points, i.e. 7 June’s close. To mitigate the trading risks,
the trailing-stop threshold is set at 1,480 points. The immediate support is stuck at 1,440 points and followed by 1,420 points. On the flip side, the first resistance is eyed at 1,480 points – this is followed by 1,500 points
