Maintain short positions on the still-bearish trend. The FKLI staged a second consecutive rebound to close 7 pts higher, at 1,473 – which is still below the immediate resistance of 1,474 pts. At one point it reached a peak of 1,481 pts. We still deem the index’s retracement leg as incomplete, and believe that it could be extended further – after it recently breached below the multi-year significant support level of 1,500-pts. Until further conclusive price actions take place, we maintain our negative trading bias.

Traders are advised to remain 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 1,487.5 pts.

The immediate support is revised to 1,460 pts. This is followed by 1,444 pts, the low of 2 Mar. Towards the upside, the immediate resistance is still pegged at 1,474 pts, the high of 2 Mar, followed by 1,487.5 pts, the high of 28 Feb.

Source: RHB Securities Research - 5 Mar 2020