With the negative trading bias maintained on KLCI futures, RHB Research continues to maintain ‘short’ positions.
After falling below the 1,450-point psychological level, the FKLI saw back-to-back selling pressure on Monday, and it plunged by 12 points to close at 1,437.50 points – recording a fresh 2-year low. The index opened with a gap-up, at 1,455 points. After printing the day’s high of 1,457.50 points, bears came forth and dragged it to the day’s low of 1,433 points before the close. The latest long bearish candlestick reaffirms that the bears remain firmly in control. Despite the RSI being at an oversold level now, as long as the negative momentum remains in place, the index may retrace towards 1,420 points, followed by 1,400 points. In the event the technical rebound happens, the FKLI should face heavy resistance at the 1,470-point level. So far, no bullish reversal pattern has been sighted yet, so no change to negative bias.
Traders should stick to the short positions initiated at 1,524.50 points (7 June’s close). To minimise the trading risks, the
trailing-stop threshold is set at 1,470. The immediate support has been changed to 1,420 points, followed by 1,400 points. The immediate resistance has been shifted lower to 1,461.50 points (17 June’s high) and followed by 1,470 points.
