RHB Research is retaining its “short” positions on KLCI futures.
The FKLI bounced upwards yesterday, to close at 1,439.50 points but remained within the bearish range of a “lower high” with “lower low”. The index opened at 1,439 points. After trading between 1,446 points and 1,432.50 points, it closed higher than the opening price – although this latest session has yet to chart a “higher high”. As such, it is believed the momentum is still weak and that the bears are still in control. The downside risk is still present, the index may be undergoing a correction towards 1,424 points, followed by 1,400 points. As the trading range was tight for the past few sessions, both the bulls and bears are adopting a wait-and-see approach. For now, however, the bears have the upper hand. The research house will hold on to a bearish bias until the trailing-stop is breached.
Traders should stick to the short positions initiated at 1,524.50 points (7 June’s close). To mitigate the trading risks, the
trailing-stop is fixed at 1,462 points. The immediate support remains at 1,424 points, followed by the 1,400-point psychological level. On the other hand, the immediate resistance stays at 1,462 points – 22 June’s high – followed by 1,488 points, or the low of 10 June.
