Once again, RHB Research has retained the call for “short” positions on KLCI futures.
The FKLI climbed higher on Wednesday, adding 10 points from the previous session to settle at 1,437 points – however, it has yet to break past the immediate resistance. The index began yesterday’s session at the low of 1,426 points. After the opening, the bullish momentum lifted it higher throughout the session, touching the high of 1,440 points before the close. Despite the index closing higher than the opening price and printing a bullish candlestick, the immediate resistance remains intact. In the view of the research house, market sentiment is not strong, as such, there is a likelihood of a correction in the coming sessions. In the event selling pressure increases again, the index would retrace to 1,415 points, followed by 1,400 points. On the other hand, breaching above the 1,437-point immediate resistance should rally the index towards the higher resistance pegged at 1,450 points. The research house is maintaining its negative bias until the trailing-stop is triggered.
Traders should keep the short positions initiated at 1,524.50 points (7 June’s close). To manage the trading risks, the trailing-stop is placed at 1,437 points.
The immediate support stays at 1,415 points, followed by the 1,400-point round figure. Conversely, the immediate resistance is seen at 1,437 points (24 June’s close), with the higher resistance at 1,450 points.