Yesterday, the FKLI plunged 20.50 points from Tuesday’s session to close at 1,419 points – a level last seen on 20 May 2020, RHB Research said
The index initially opened at 1,436 points. After touching the day’s high at 1,444 points, it progressed lower throughout the session. In the afternoon, negative momentum gained strength to push it through the 1,424-point support to hit the day’s low of 1,415 points before the close.
As the negative momentum has picked up the pace again, RHB Research said it should correct towards 1,400 points, followed by 1,388 points. The correction will continue until it forms a bullish reversal candlestick.
The RSI indicator is heading lower, echoing that the index is still undergoing a correction phase. At this stage, the momentum is weak, and we are unlikely to see the FKLI break past the upside resistance in the near term.
Since the bearish structure remains intact for now, RHB said that it would stick to our negative bias. Traders are recommended to hold the short positions initiated at 1,524.50 points (7 Jun’s close).
To minimize the trading risks, the trailing stop is set at 1,462 points. The immediate support is revised to 1,400 points, followed by the lower 1,388 points. Conversely, the first resistance is changed to 1,450 points, followed by the higher resistance of 1,462 points. (22 Jun’s high).
The immediate support is revised to 1,400 pts, followed by the lower 1,388 pts. Conversely, the first resistance is changed to 1,450 pts, followed by the higher resistance of 1,462 pts (22 Jun’s high)
