After attempting to rebound on Tuesday, the FKLI reversed down sharply yesterday, declining 28 points to close at 1,430 points. It opened at 1,458.50 points, and briefly touched the day’s high at 1,462 points before selling pressure kicked in to reverse its direction downwards towards the day’s low of 1,424 points near the close – lower than the previous day’s low, RHB Research said
The latest long black body candlestick signals that the bears are set to continue dominating in the coming sessions. With this, the downside risks are higher, which may see it falling further towards the 1,400-point threshold.
As such, RHB Research said that it stick to our negative bias unless the momentum reverses. We recommend that traders maintain the short positions initiated at 1,524.50 points (7 Jun’s close).
To mitigate the trading risks, the trailing-stop threshold is set at 1,470. The immediate support has been revised to 1,424 points, or 22 Jun’s low, followed by the 1,400-point mark. Meanwhile, the nearest resistance is set at 1,464.50 points, or 21 Jun’s high, then 1,488 points ie the low of 10 Jun.
