Bearish bias still strong; maintain short positions. The FKLI extended its rebound into the third session, adding 4 pts to settle at 1,477 pts – slightly above the previous immediate resistance of 1,574 pts. Despite the recent sessions’ positive price reaction, on the back of the recently oversold RSI reading, we still believe this is just a minor rebound. This means the overall declining trend is still firmly in place. This bias will likely stay in place, as long as the index is still capped by 1,487.5 pts. We maintain our negative trading bias.

With no chance in trend sighted, 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 maintained at 1,460 pts. This is followed by 1,444 pts, the low of 2 Mar. Moving up, the immediate resistance is now pegged at 1,487.5 pts, the high of 28 Feb. This is followed by 1,500-pt level.

Source: RHB Securities Research - 6 Mar 2020