KLCI Futures on Track of Positive Rebound

The FBM KLCI opened at 1,413.67. And the index fluctuated between 1,413.67 – 1,421.96 at the time of writing.

Technical Analysis on KLCI Futures

RHB Research has maintained short positions on KLCI futures.

The FKLI persisted with the positive rebound yesterday, climbing 8 points higher to close at 1,412.50 points as it looked to hit the 1,418-point resistance. The index persisted with the buying pressure as it opened higher at 1,407.50 points and whipsawed between the low of 1,404 points and high of 1,415.50 points during the session, which saw it retrace mildly from the peak towards the close. The third consecutive bullish candlestick depicts the FKLI as solidifying the interim support level while still failing to negate the recent “Bearish Marubozu” candlestick as it still trades below the 1,418-point resistance. If it manages to breach that level, buying interest may accelerate in the short term to drive the index towards 1,443 points.

The FKLI may trade sideways between 1,418 points and 1,388 points in the coming sessions, as the RSI is still marking at below the 40% level. Nevertheless, the strong bearish bias remains as long as the index still trades below the 50-day SMA line. The research house is sticking to its bearish bias until the trailing stop is triggered.

Traders should maintain the short positions initiated at 1,462.50 points or the closing level of 14 September. To capture the short-term trading opportunities, the trailing-stop threshold is set at 1,418 points, ie the immediate resistance.

The immediate support is at 1,388 points – 30 September’s low – with the lower support at 1,352.50 points, i.e. 22 April’s low. Conversely, the immediate resistance is at 1,418 points – 26 September’s high – and followed by 1,443 points or the high of 22 September.

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