Bears are pushing ahead; maintain short positions. The FKLI ended the latest session 10.5 pts weaker at 1,538 pts. Intraday, it hit a low and high of 1,537 pts and 1,547.5 pts. The weak session is a continuation from the price rejection that took place from the resistance zone of 1,557.5 pts and 1,566.5 pts on 11 Feb. There is a high possibility the index is in the process of extending its downtrend. Towards the downside, the 3 Feb’s low of 1,518.5 pts could be retested. Maintain our negative trading bias.

As the bears continue to push prices lower, we recommend traders to stay in short positions. We initiated these at 1,548.5 pts, the closing level of 12 Feb. To manage risks, a stop-loss can be placed above 1,566.5 pts.

The immediate support is maintained at 1,538.5 pts, the low of 10 Feb – as it was not firmly breached in the latest session. This is followed by 1,526.5 pts, derived from 5 Feb’s candle. Meanwhile, the immediate resistance is now set at 1,550 pts, derived from 12 Feb’s candle. This is followed by 1,560.5 pts, the high of 11 Feb.

Source: RHB Securities Research - 14 Feb 2020