The KLCI futures may continue to test the immediate hurdle of 1470 -point level, hence RHB Research is maintaining ‘short’ positions on the said futures.
After falling deeper into the oversold territory, the FKLI underwent a strong rebound yesterday, rising 20.50 points to close at 1,458 points. It opened at 1,437.50 points (the day’s low), and rose to the session’s high of 1,464.50 points before closing. The latest candlestick with a shaved lower shadow indicates that the bears are taking a breather now. With selling pressure subsiding, the FKLI may continue climbing to test the immediate resistance of 1,470 points. Breaching the threshold would lift the index to test the 1,488-point resistance. Although the downside risks are limited now (as mentioned in a previous note), the index has to break past the immediate resistance to prove that the momentum has gained in strength. Otherwise, it may retreat below the 1,450-point support.
The research house will stick with its negative bias until the trailing-stop is breached. It is recommended that traders maintain the short positions initiated at 1,524.50 points (7 June’s close). To mitigate the trading risks, the trailing-stop threshold is set at 1,470. The immediate support has been revised to 1,450 points, followed by 1,433 points or the low of 20 June. Meanwhile, the nearest resistance is set at 1,470 points, then 1,488 points ie was the low of 10 June.
