Once again, RHB Research has called for maintaining “short” positions on KLCI futures.
Despite facing mild selling pressure, the FKLI managed to pare its intraday losses and surge on strong momentum to close at 1,432 points – eyeing to cross the 1,437-point immediate resistance. Yesterday, the index started off at 1,427 points. Although the opening was strong, it experienced strong profit taking in the morning and retreated to the day’s low at 1,417.50 points. This caused the bulls to go bargain hunting, lifting the index upwards and testing the day’s high at 1,433 points before closing in positive territory. The latest price action suggests that selling pressure is taking a pause, which may see the index rise higher to test the immediate resistance. Breaching the immediate threshold will negate the Bearish Marubozu formed on 6 July and indicate that the bulls are back be in control. Despite the RSI rounding higher, echoing that the bullish momentum is building up, hence the research house is sticking to a negative bias until the trailing-stop is breached.
Traders are advised to keep the short positions initiated at 1,524.50 points (7 June’s close). To mitigate the trading risks, the
trailing-stop is revised to 1,437 points from 1,450 points.
The immediate support revised to 1,415 points (6 July’s low), and followed by the 1,400-point round figure. Meanwhile, the first resistance is eyed at 1,437 points (24 June’s close), then the higher resistance of 1,450 points.
