Maintain short positions as the immediate resistance still stands. The FKLI ended the latest session stronger by 11 pts at 1,506 pts. At one point, it reached a high of 1,514.5 pts, and was within a striking distance to test the 1,515-pt resistance mark. As mentioned, for the index to invalidate our current negative bias, it has to cross above the said resistance. Until this happens, the retracement phase that started from the high of 1,586.5 pts on 9 Jun is still deemed to be in place. Hence, we are keeping 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.

The immediate support is pegged at 1,500-pt mark. This is followed by 1,484 pts, the low of 15 Jun. Moving up, the immediate resistance is set at 1,515 pts (slightly above the 200-day SMA line), followed by 1,534 pts, the high of 15 Jun

Source: RHB Securities Research - 1 Jul 2020