Bursa Malaysia opened lower this morning with the FBM KLCI opened at 1,459.45. At the point of writing the KLCI moved between the range of 1,453.35 – 1,459.89.
Technical Analysis on KLCI Futures
RHB Research has once again maintained short positions on KLCI futures.
After a bearish session, the FKLI rebounded strongly on Tuesday and closed at 1,456.50 points to mark a 12-point gain. It opened at 1,444.50 points, printed the day’s low of 1,442.50 points before climbing to the day’s high of 1,463 points before the close. Despite charting a bullish candlestick, the index has yet to form a fresh “higher high” bullish pattern. As such, the bullish reversal pattern has not formed yet – so selling pressure may return, which could pull the index down to 1,433 points. Should the bears decide to take a longer pause, the FKLI may climb further to test the 1,476-point resistance. As long as it remains below the threshold of 1,493.50-point level, the bearish set-up should be intact. Hence, the research house maintains a negative bias for now.
Traders should remain in the short positions initiated at 1,462.50 points or the closing level of 14 September. To manage the trading risks, the initial stop-loss is fixed at 1,493.50 points.
The immediate support is at 1,433 points – 21 Jul’s low – followed by 1,406.50 points ie the low of 14 July. Conversely, the
immediate resistance is still at 1,476 points – 8 Sep’s low – followed by 1,493.50 points or the high of 12 September.