Bursa Malaysia has alternated between positive and negative finishes through the last four trading days since the end of the five-day losing streak in which it had tumbled almost 65 points or 4.6 percent.
At 9.25, the FBM KLCI opened at 1410.32.
RHB Retail Research, in a note on Tuesday (March 21), said after staging a strong rebound last Friday, the FKLI took profit yesterday, falling 11 pts to close at 1,401 pts.
Sentiment was initially positive, with the index opening higher at 1,414.50 pts. However, it then fell sharply throughout the session towards hitting the 1,394.50-pt day’s low before rebounding mildly at the close.
The latest bearish candlestick signals a possible shortlived end of the recent short-term rebound.
For the major trend, it is worth noting that both the 50- and 200-day SMA lines are trending lower, suggesting the bears still have the technical advantage.
Hence, RHB expects the FKLI to hover near 1,400 pts in the coming sessions with a downside bias in the later sessions. This means it may breach below this level and hit the next support at 1,382 pts.
Based on the medium-term outlook, RHB maintains their bearish bias – unless the index breaks past the stop-loss mark.
The research house advises traders to hold on to their short positions initiated at 1,414 pts or 10 Mar’s close. To mitigate the trading risks, the initial stop-loss threshold is fixed at 1,445 pts.
The immediate support is set at 1,400 pts and followed by 1,382 pts ie the low of 17 Mar. Conversely, the immediate resistance is eyed at 1,423 pts – 1 Mar’s low – and followed by 1,445 pts, ie the high of 7 Mar.
