The FBM KLCI opened 1,473.36. While the day-range of KLCI is 1,473.36 – 1,478.54.
KLCI Futures Technical Analysis
Stop-loss triggered, RHB Research has initiated short positions on KLCI futures.
The FKLI accelerated its selling momentum yesterday, after opening lower with a gap, to settle 19.5 points weaker at 1,462.5 points – breaching below the 50-day average line and previous support level of 1,464.5 points. It opened at 1,472 points and briefly touched the day’s high of 1,474 points before strong selling pressure kicked in. It then fell to the low of 1,458.5 points before rebounding moderately towards the close. Yesterday’s “Bearish Breakaway Gap” confirmed its strong downward movement, as it formed a fresh “lower low” bearish structure.
The research house does not see the FKLI rebounding in the coming sessions. The immediate and medium-term outlook would see the FKLI continuing to fall to 1,413.5 points or 19 Jul’s low. As the stop-loss was triggered, research house shifts to a bearish bias.
RHB Research closed out its short positions initiated at the close of 30 Aug (1,510 points), after the stop-loss at 1,476 points was triggered. Conversely, we initiate short positions at the closing level of 14 Sep (1,462.5 points). To mitigate trading risks, the initial stop-loss threshold is set at 1,493.5 points, which was 12 Sep’s high.
The immediate support is placed at 1,457 points – 25 July’s low – followed by 1,413.50 points, or the low of 19 July. The immediate resistance is now at 1,500 points, followed by 1,510 posts, which was the close of 30 August.
