Maintain short positions. Although the FKLI underwent a brief intraday rebound last Friday, it closed 0.50 pts lower at 1,529 pts. The benchmark index initially opened at 1,531 pts and dropped to the session’s low of 1,524 pts. Bargainhunting emerged near the session’s low, paring the intraday losses and lifting the index to its close. This showed there is buying interest near the immediate support, as the RSI is moving into oversold territory. As such, we expect to see a technical rebound in the coming sessions. However, strong selling pressure may emerge near the immediate resistance of 1,546.50 pts. Breaching the threshold would attract further buying pressure. We are maintaining a negative trading bias until the immediate resistance is breached.

Traders should remain in short positions, initiated at 1,584 pts or the closing level of 26 Oct. To mitigate trading risks, the trailing-stop threshold is at 1,547 pts.

The immediate support is still at 1,523.50 pts – 1 Nov’s low – then 1,505 pts or 5 Oct’s low. Meanwhile, the first resistance is seen at 1,546.50 pts or 3 Nov’s high, then 1,560 pts.

Source: RHB Securities Research - 8 Nov 2021