The FTSE Bursa Malaysia KLCI has moved lower in back-to-back sessions, slipping more than a dozen points or 0.8 percent along the way.
The Kuala Lumpur Composite Index now rests just beneath the 1,400-point plateau although the may be signs of recovery on Monday.
At 9.20am, the FBM KLCI opened at 1402.33.
RHB Retail Research cited, in a note today (March 27), that the FKLI resumed its correction last Friday, breaching the 1,400-pt support and closing weaker at 1,395.50 pts.
The index initially opened at 1,408.50 pts and climbed towards the day’s high of 1,412.50 pts.
However, negative momentum gained pace in the afternoon, dragging the index to touch the day’s low at 1,393.50 pts before closing at 1,395.50 pts.
The latest bearish candlestick has weakened the Bullish Engulfing pattern formed on 17 Mar.
Furthermore, after the index charted a Bullish Engulfing pattern, it did not chart a second bullish candlestick – this shows that the momentum has remained weak and the bears have the upper hand.
Since the index is reverting to a downside movement, it should pull back to test the recent low of 1,382 pts, followed by the 1,360.50-pt level.
Riding on the bearish momentum, RHB holds on to their negative bias while recommending traders to retain the short positions initiated at 1,414 pts, ie the 10 Mar’s close.
To manage the trading risks, the initial stop-loss is set at 1,445 pts.
The immediate support is lowered to 1,382 pts (17 Mar’s low), followed by 1,360.50 pts, or the low of 14 Oct 2022.
Meanwhile, the first resistance is still pegged at 1,423 pts – 1 Mar’s low – followed by 1,445 pts, or the high of 7 Mar.
