The FBM KLCI opened at 1,439.11 at 9 a.m. And the main index oscillate between 1,437.23 – 1,440.29 at the time of writing.
Technical Analysis on KLCI Futures (FKLI)
With continued selling pressure, RHB Research has maintained short positions on KLCI futures.
The FKLI saw continued selling momentum yesterday as it dipped 6 points to settle at 1,433.5 points – hitting the 1,433-point nearest support level. The index opened in a mildly positive tone at 1,441 points to touch the day’s high of 1,443 points before falling strongly until the end of the session. It hit the day’s low of 1,428.5 to close in negative territory.
This continuation of the bearish candlestick shows that the downtrend continuation pattern remains intact and is capped at the nearest support level of 1,443 points. Although the research house expects mild buying interest near the support level in the immediate term, selling interest may re-emerge to dominate the later sessions, ie falling further towards hitting the next support of 1,406.5 point. The bearish bias should stay relevant as long as the index remains below the 1,493.50-point level, which is also below the 50-day SMA line. As such, the research house stays to its bearish bias.
Traders are advised to 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 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 September’s low – followed by 1,493.50 points, or the high of 12 Sep.
