RHB Research has maintained its negative trading bias on the FTSE Bursa Malaysia KLCI Futures (FKLI) despite the index staging a fresh rebound and closing 5 points higher at 1,671.50 points.
The FKLI opened lower at 1,663.50 points and slipped to an intraday low of 1,657.50 points before rebounding to a high of 1,677 points. It subsequently settled at 1,671.50 points.
RHB said the latest price action indicates that an immediate support level has formed at 1,660 points.
While the Relative Strength Index (RSI) is beginning to turn higher and bullish momentum is showing signs of recovery, the research house noted that the FKLI remains below both its 50-day and 200-day simple moving averages, leaving the broader technical structure bearish.
RHB expects the futures contract to undergo a period of sideways consolidation within the 1,660-1,700-point range.
Against this backdrop, it maintained its recommendation for traders to retain short positions initiated at 1,663.50 points, based on the Sept 1 closing level.
The stop-loss remains at 1,730 points to manage trading risks.
RHB revised the first support level to 1,660 points, followed by 1,640 points, while resistance is seen at 1,700 points and subsequently 1,730 points.
The research house said it would retain its negative trading stance while the index remains within the current bearish technical setup.
