The FTSE Bursa Malaysia KLCI futures (FKLI) extended its decline on Thursday, falling 28 points to close at 1,613.50, with RHB Research maintaining a negative trading bias after the index broke below the key 1,620 support level.
The futures contract opened at 1,643 points and briefly touched an intraday high of 1,647 before selling pressure intensified, pushing it to a low of 1,611.50. It ended near the day’s low with a long bearish candlestick.
RHB said the break below 1,620 signals that strong bearish momentum remains in play, although the FKLI could attempt a counter-trend rebound following the sharp decline.
Should a rebound materialise, the index may climb towards the 1,640-1,640.50 area.
However, RHB said the broader downside structure remains intact as long as the FKLI stays below 1,660 points.
The research house maintained its short position initiated at the Sept 1 close of 1,663.50 points and revised its stop-loss level lower to 1,660 as bearish momentum strengthened.
Following the latest breakdown, immediate support is seen at 1,600 points, followed by 1,580.
Resistance is located at 1,640 points, with the next hurdle at 1,660.
