KLCI futures continue to get calls on “short” positions by RHB Research.
The recent negative sentiment on the FKLI took a breather yesterday as the index bounced 4.5 points to close at 1,418.5 points. It opened at 1,412 points and then fell to the day’s low of 1,406.5 points before buying pressure kicked in – taking it northwards. The FKLI then propelled higher towards 1,420.5 points, which saw the index closing on a positive tone. The latest bullish candlestick, where the intraday high and low were lower than the previous session’s high and low, indicate that buying interest was mild and may be shortlived. This is supported by the downward movements of both the 50- and 200-day SMA lines, which emphasises the FKLI’s downtrend. As the selling pressure still dominates, the index should continue to trend lower towards 1,400 points, followed by the 1,388-point support. Unless the momentum reverses towards the trailing-stop level, the research house is maintaining its negative bias.
Traders are advised to maintain the short positions initiated at 1,524.5 points or 7 June’s close. To manage the trading
risks, the trailing-stop threshold is set at 1,450 points.
The immediate support is still at 1,400 points, followed by 1,388 points. Conversely, the immediate resistance stays at 1,437
points, i.e. 24 Jun’s close, and then 1,450 points.
