Maintain short positions, while moving the trailing-stop to the breakeven level. The FKLI narrowed its latest session’s losses yesterday, after rebounding from a low of 1,536 pts to close at 1,549 pts – crossing below the previous immediate support of 1,555 pts. The negative performance pointed to a continuation of the prior session’s downside breach of the 50-day SMA line. All in, the retracement that started from 29 Jul’s “Double-Top” formation is still in effect. We maintain a negative trading bias

Traders should remain in short positions. We initiated these at 1,569.5 pts, the closing level of 3 Aug. To manage risks, a stop-loss can now be set at the breakeven mark.

The immediate support now pegged at 1,536 pts, the latest low, followed by 1,515 pts. Moving up, resistance points are set at 1,560 pts and 1,574 pts.

Source: RHB Securities Research - 27 Aug 2020