Maintain short positions as the bias remains negative. The FKLI formed a black candle to settle 11 pts weaker last Friday, at 1,535 pts – after breaching the previous immediate support of 1,538.5 pts. Trading ranged between 1,534.5 pts and 1,554.5 pts. The breakdown from the support level indicates that the index’s weak bias is extending. While the RSI reading is now in oversold territory, in the absence of a positive price reversal, we make no change to our negative trading bias.

As the bears remain in the driver’s seat, traders are recommended to remain in short positions. We initiated these at 1,544.5 pts, the closing level of 28 Jan. To manage risks, a stop-loss can be placed above 1,557.5 pts.

We revised the immediate support target to the 1,500-pt mark, this is followed by 1,491 pts, the high of 28 Oct 2011. Moving up, the immediate resistance is now pegged at 1,545.5 pts, the low of 3 Dec 2019. This is followed by 1,557.5 pts, the latest session’s high.

Source: RHB Securities Research - 3 Feb 2020