‘Short’ positions being maintained by RHB Research on KLCI Futures.
The FKLI bulls charged higher on Tuesday, tracking the positive sentiment of regional peers as it rose 16 points to close stronger at 1,454.50 points – eyeing to cross the 1,462-point resistance. Yesterday, the index initially opened weaker at 1,438 points, and fell to the day’s low at 1,432.50 points. It then bounced off the intraday low to test the day’s high of 1,457 before the strong closing. Despite the positive price action, the index has yet to breach the 1,462-point resistance, while the Bearish Marubozu (formed on 22 Jun) remains intact. In the event the index breaks past the immediate threshold, expect a follow-through momentum towards the 1,488-point level. Meanwhile, strong support has formed at the 1,424-point level. As this stage, the research house is still sticking to a bearish bias until the trailing-stop is triggered.
Traders are advised to retain the short positions initiated at 1,524.50 points, which was the close of 7 June. To minimise the
trading risks, the trailing-stop is set at 1,462 points. The immediate support is marked at 1,424 points, followed by 1,400 points. Towards the upside, the immediate resistance is eyed at 1,462 points – 22 June’s high – followed by 1,488 points, or the low of 10 June.
