Holding on to its bearish bias, RHB Research has maintained ‘short’ positions on KLCI futures.
The FKLI climbed higher on Monday as selling pressure was seen moderating. The index started off the session stronger at 1,446.50 points. However, the bulls failed to maintain the momentum, causing the index to retreat to the day’s low at 1,430 points before closing at 1,438.50 points. Although the closing was lower than the opening price – printing a bearish body candlestick – the latest session’s low (1,430 points) is higher than previous session’s low (1,427 points). Thus, a “higher low” indicates that the bulls have a technical advantage now. If the bullish momentum continues, the index may break past 1,450 points, followed by the 1,462-point resistance. As of now, expect strong selling pressure to emerge near the resistance. The research house is holding on to its bearish bias until the trailing-stop is breached.
Traders should keep to the ‘short’ positions initiated at 1,524.50 points, or the close of 7 June. To mitigate the trading risks,
the trailing-stop is fixed at 1,462 points. The immediate support is fixed at 1,424 points, followed by 1,400 points. Conversely, the first resistance is still pegged at 1,450 points, followed by 1,462 points, which was the high of 22 June.
