Maintain short positions as there is no clear reversal signal from the support zone. The FKLI continued to experience downward pressure in the latest trade. At one point, it hit a low of 1,493 pts before rebounding to close at 1,503.5 pts – a 5-pt drop. The index has not been able to exhibit a strong signal to reverse its retracement leg from around the support zone of 1,500-1,515 pts over recent sessions. Should this zone be breached, a deeper correction could potentially develop. All in, we continue believe that the index is still at the early stages of correcting its upward move between mid-Mar and early-Jun. Maintain our negative trading bias.
We advise traders to stay in short positions. We initiated these at 1,548.5 pts – the closing level of 11 Jun. To manage risks, a stop-loss can be set above 1,560-pts.
The immediate support is maintained at 1,500-pt mark. This is followed by 1,484 pts, the low of 15 Jun. Moving up, the immediate resistance is now eyed at 1,515-pts (near the 200-day SMA line). This is followed by 1,545 pts, derived from 12 Jun’s candle.
Source: RHB Securities Research - 22 Jun 2020
Created by rhboskres | Aug 26, 2024