The FBM KLCI opened at 1,412.86 this morning. The main index intraday-range is 1,412.29 – 1,420.27. Whilst yesterday’s close at 1,413.04.
Technical Analysis on KLCI Futures
RHB Research has continued to maintain short positions on KLCI futures.
The FKLI persisted in its selling momentum yesterday as it dived 7.5 points lower to settle at 1,413.5 points – hitting the 1,406.5-point support level. The index opened significantly lower at 1,411.50 points to oscillate between the day’s low of 1,407 pts and day’s high of 1,418 points as it closed slightly above the opening level, but still beneath the previous session’s close. The strong sell down, partially mitigated by late buying interest yesterday, signals that the immediate term buying pressure above the 1,406.5-point support may prevent the FKLI from falling lower.
The research house expects a mild rebound and sideways movement to occur in the coming sessions before strong selling momentum follow-through drags it below the support level. This continuation downward pressure in the medium term is supported by the weakening of the RSI below the 30% level. As such, the research house is sticking to its bearish bias.
Traders should remain in the short positions initiated at 1,462.50 points, which was the closing level of 14 September. To manage the trading risks, the initial stop-loss threshold is fixed at 1,493.50 points.
The nearest support is at 1,406.50 points – the low of 14 July – followed by 1,352.5 points, ie the low of 22 April. The
immediate resistance is still at 1,463 points – 20 September’s high – and followed by 1,493.50 points, which was the high of 12 September.
