Maintain short positons. The FKLI attempted a rebound last Friday, during which it hit a high of 1,506.5 pts, before
closing 1 pt lower at 1,493 pts. The intraday negative price reversal also meant that the index was still trading slightly
below the 200-day SMA line – an important support level. We still regard the retracement phase that started from July’s
“Double Top” formation as incomplete, and believe it is likely to be extended further, should this SMA line be breached
decisively in the sessions ahead. Also, the RSI has also fallen below its support line. We maintain our negative trading
bias.

We recommend that traders stick to short positons. We initiated these at 1,510 pts, the closing level of 12 Oct. To
manage risks, a stop-loss can now be placed above 1,530 pts.
 

The immediate support is still maintained at 1,483.5 pts, the low of 24 Sep. This is followed by 1,476 pts – the low of 29
Jun. On the upside, the immediate resistance is set at 1,500 pts, followed by 1,515 pts.