RHB Retail Research

FKLI: Selling Pressure Accelerates

Publish date: Wed, 15 Dec 2021, 06:06 PM
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RHB Retail Research

Maintain short positions. The FKLI experienced strong selling pressure yesterday, plunging 22 pts to settle weaker at 1,475.50 pts. The index began at 1,497 pts and progressed lower. It slid to the 1,475-pt day low before the close and formed a long black body candlestick. The bears have overwhelemed the bulls and we expect the negative momentum to follow through to test 1,465 pts – this is followed by the 1,450-pt support. If the bulls stage a technical rebound, they will meet stiff resistance at the 1,500-pt level. With the bears still in control, we make no change to our negative trading bias.

Traders are advised to retain the short positions initiated at 1,496.50 pts, ie the close of 1 Dec. To protect the trading risks, the stop-loss threshold is set at 1,517 pts.

The immediate support is revised to 1,465 pts and followed by the 1,450-pt whole number. Conversely, the nearest resistance remains at 1,500 pts and is followed by the higher hurdle at 1,512.50 pts, which was the high of 1 Dec.

Source: RHB Securities Research - 15 Dec 2021

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