Maintain short positions despite 1,484-pt support still holding up. The FKLI staged a positive intraday price reversal, adding 9.5 pts to close at 1,494.5 pts. The index reached a low of 1,476 pts earlier in the session. Despite the positive intraday price performance, which saw the immediate support of 1,484 pts still holding up despite coming under pressure in recent sessions, we are still of the view that the FKLI is in a correction phase. This bias should remain in place, as long as the index is still capped by the 1,500-1,515 pt resistance zone. We 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 now be set above 1,515 pts.

We are keeping the immediate support at 1,484 pts, the low of 15 Jun. This is followed by 1,466 pts, the high of 29 May. Moving up, the immediate resistance is set at the 1,500-pt mark. This is followed by 1,515 pts (slightly above the 200- day SMA line)

Source: RHB Securities Research - 30 Jun 2020