The Malaysia stock market headed south again on Thursday, one day after ending the five-day losing streak in which it had tumbled almost 65 points or 4.6 percent.
At 9.20am, the FBM KLCI opened at 1402.68.
RHB Retail Research cited on Friday (March 17) that after rebounding on Wednesday, the FKLI resumed its downwards trend and fell sharply by 12 pts to close at 1,385 pts on Thursday, forming a new “lower low” bearish pattern.
The index started weakly at 1,386 pts and then oscillated negatively between the high of 1,392.50 pts and low of 1,382 pts throughout the session, closing just below the opening.
Thursday’s negative momentum confirmed that Wednesday’s rebound was shortlived – the FKLI is now set for a strong bearish momentum. The RSI indicator is currently weak at 25% with no divergence signal yet – this indicates the index will likely fall significantly in the upcoming sessions towards the immediate support of 1,360.50 points, followed by 1,300 pts during the later sessions.
As such, RHB maintains its bearish bias.
The research house recommends traders stick to their short positions, which we initiated at 1,414 pts or the close of 10 Mar. To manage the trading risks, the initial stop-loss threshold is placed at 1,445 pts.
The immediate support is set at 1,360.50 pts – 14 Oct 2022’s low – and followed by 1,300 pts. The immediate resistance is pegged at 1,423 pts – 1 Mar’s low – and followed by 1,445 pts, which was 7 Mar’s high.
