The KLCI opened at 1,444.87 at 9am. The KLCI oscillated from 1,440.81 to 1,448.51.
Technical Analysis on KLCI Futures
RHB Research has maintained short positions on KLCI futures.
The FKLI resumed the downtrend movement yesterday, falling 17 points to settle at 1,439.5 points – beneath the previous session’s low. Yesterday, selling pressure dominated the whole session ie from the opening of 1,455.5 points until it hit the low of 1,437 points near the close. This latest selling momentum has printed another “lower low” bearish pattern below the 50-day average line – affirming the bearish continuation pattern. This is in line with the research house’s earlier expectations that the index is on its way to fall further towards 1,433 points in the coming sessions. As long as it remains below the threshold of 1,493.50-point level, which is also below the 50-day SMA line, the bearish setup should stay intact. Hence, the research house is sticking to its negative bias.
Traders should remain in the short positions initiated at 1,462.50 points, or the closing level of 14 Sep. 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 July’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.
