RHB Research has retained its “short” positions on KLCI futures.
As selling pressure moderated, the FKLI rose slight by 1.50 points to close at 1,420.50 points. On Thursday, the index started off at 1,421.50 points. After moving between 1,428 points and 1,417.50 points, it closed at 1,420.50 points. Despite the “higher low” yesterday, the index has yet to form a fresh “higher high”. Hence the bears are perceived to still be in control. If the index manages to break past the upside resistance at the 1,450-point level, it should attract strong buying interest. However, with the RSI remaining below the 50% level, the momentum is still weak. It is believed the correction will continue and push the index towards the 1,400-point support. For now, the research house is still holding on to its negative bias.
Traders should retain the short positions initiated at 1,524.50 points (7 June’s close). To mitigate the trading risks, the
trailing-stop is revised to 1,450 from 1,462 points. The immediate support is marked at 1,400 points, followed by the lower support of 1,388 points. Meanwhile, the nearest resistance is eyed at 1,450 points, followed by the recent high of 1,462 points (22 June’s high).