“Short” positions are being maintained by RHB Research on KLCI futures.
Amidst selling pressure tapering, the FKLI managed to stage a strong rebound from the immediate support, albeit, declining 5 points from the previous session to settle at 1,427 points. The index initially started off at 1,430.50 points. After touching the day’s high of 1,434 points, it fell on strong profit taking to hit the day’s low at 1,413.50 points before the bulls staged a rebound, resulting in the index closing at 1,427 points. The latest candlestick with a long lower shadow affirms that 1,415 points is acting as a strong support now. If the positive momentum follows through, it may continue to climb higher to test the 1,437-point immediate resistance. Otherwise, if it fails to sustain the positive momentum, it should breach below the 1,415-point level towards the lower support located at the 1,400-point level. As for now, the immediate resistance remains intact, with the index yet to chart a fresh “higher high” bullish pattern. Technically, it is still in correction territory. Hence, the research house is holding on to its negative bias until the trailing-stop is breached.
Traders are advised to hold on to the short positions initiated at 1,524.50 points (7 June’s close). To minimise the
trading risks, the trailing-stop is set at 1,437 points.
The immediate support remains unchanged at 1,415 points, followed by the 1,400-point round figure. Towards the upside,
the nearest resistance is pegged at 1,437 points (24 June’s close), while the higher resistance is at 1,450 points
