Maintain short positions. The FKLI extended its retracement after multiple attempts to extend its rebound failed over past sessions. Yesterday, it closed 13.5 pts lower at 1,557 pts, thereby crossing below the previous immediate support of 1,565 pts and the 50-day SMA line. The weak performance indicates that the correction phase that started from the failed attempt to cross above the 1,621.5-pt resistance is still in place, and may likely be extended. As such, we maintain a negative trading bias.

Traders should remain in short positions. We initiated these at 1,569.5 pts, the close of 3 Aug. To manage risks, a stoploss can now be set above 1,574 pts.

The immediate support is now pegged at 1,555 pts, the price point of 15 Aug. This is followed by 1,541 pts, the low of 12 Aug. Conversely, the immediate resistance is revised to 1,574 pts, the latest high, followed by 1,583.5 pts - the high of 19 Aug,

Source: RHB Securities Research - 26 Aug 2020