RHB Research has continued to maintain “short” positions on KLCI futures.
At the eleventh hour, the FKLI staged a strong rebound to close at 1,430 points – eyeing to test the immediate resistance of 1,437 points. The index initially started off at 1,421 points. After falling to the low of 1,417 points, it moved sideways for most of the session. Just before the market closed, it jumped towards the session’s high of 1,432 points and closed at 1,430 points. Despite the index charting a bullish candlestick, it has yet to cross above the immediate resistance, or chart a fresh “higher high”. The index has been trending lower recently on profit taking amid the bearish pattern of “lower highs” with “lower lows”. For now, the research house is holding the opinion that the correction still ongoing and the index is very likely to revert to a downward movement, drifting towards the 1,400-point support. Hence, no changes to negative bias.
Traders should hold on 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 1,450 points.
The immediate support remains unchanged at 1,400 points, followed by 1,388 points. Conversely, the nearest resistance is
pegged to 1,437 points (24 June’s close), and the subsequent resistance at 1,450 points.
