The FKLI underwent strong selling pressure near the 1,462-point resistance and shed 3.5 points to close at 1,453.50 points yesterday. It opened at 1,449 points, RHB Research said
It said that the momentum was strong during the morning session, as the index tested the day’s high of 1,463 points before reversing direction to record the day’s low at 1,445 points before closing.
RHB said that the latest session saw the index charting a candlestick with a long upper shadow, which pointed to strong bearish pressure at the immediate resistance of 1,462 points.
With the strong selling pressure in play, the index is likely to resume its downtrend towards 1,424 points, followed by the 1,400-point psychological support.
RHB Research said that it will maintain a bearish trading bias until the trailing-stop is breached. We recommend that traders remain in the short positions initiated at 1,524.50 points (7 Jun’s close).
To mitigate the trading risks, the trailing-stop is set at 1,462 points. The immediate support is still at 1,424 points, followed by 1,400 points. Meanwhile, the nearest resistance is set at 1,462 points – 22 Jun’s high – followed by 1,488 points or the low of 10 Jun.
