The FBM KLCI opened at 1,454.42 today. With the day-range of 1,454.42 – 1,458.71.
Yesterday the KLCI dropped below its support level of 1,460-point. The KLCI is expected to trade in directionless, range bound this week as investors waiting for interest rate announcements by major central banks.
Technical Analysis in KLCI Futures
RHB Research has maintained short positions on KLCI futures.
The FKLI experienced a strong bearish session on Monday, plummeting 13 points to close weaker at 1,444.50 points – breaching the strong support of 1,450-point level. Yesterday, the index started off at 1,459 points and climbed to test the day’s high of 1,462 points. However, the momentum reversed sharply, sending the index towards the day’s low of 1,442 points. The index then hovered sideways until the market closed. The latest price action suggests that sentiment has turned cautious, and the mood is risk-off. With the bears gripping the index stronger, it should retrace towards 1,433 points, followed by the 1,406.50-point level.
As mentioned in the previous note, it is expected the correction to continue until the is index able to bounce off the support. In a typical bearish setup, support tends to be weak. As negative momentum is still in play, the research house is keeping its bearish bias unchanged.
Traders are advised to hold on to short positions initiated at 1,462.50 points, or the closing level of 14 September. To minimise the trading risks, the initial stop-loss is set at 1,493.50 points.
The immediate support is changed to 1,433 points – 21 July’s low – followed by 1,406.50 points, or the low of 14 July.
Meanwhile, the first resistance still pegged at 1,476 points – 8 September’s low – followed by the higher resistance of 1,493.50 points, or the high of 12 September.