RHB Research continues to maintain ‘short’ positions on KLCI futures.
The FKLI continued on its downward correction last Friday, retreating 12.50 points to close at 1,449.50 points – slipping slightly below the 1,450-point psychological support. The index began the session at 1,461 points. After recording the session’s high of 1,461.50 points, it began to trend downwards and reached the session’s low of 1,440.50 points before closing. The latest session saw the index rebounding from the 1,440-point support and charted a long lower shadow – as it attempted to form an interim base. If it breaches the resistance point of 1,470 points in the sessions ahead, the FKLI may stage a technical rebound towards the 1,480-point resistance. Note that the RSI has been meandering in the oversold region, which increases the likelihood of a rebound emerging soon – with downside risks being limited. Nevertheless, the research house will maintain our until the trailing-stop is breached.
Traders should keep to the short positions initiated at 1,524.50 points (7 Jun’s close). To mitigate the trading risks, the
trailing-stop threshold is now at 1,470, from 1,480 points. The immediate support has been revised to 1,440 points, followed by 1,420 points. Towards the upside, the immediate resistance is now at 1,470 points, followed by 1,480 points.
