Technical landscape remains weak. The FBMSC fell 49.46 pts to 14,993.20 pts at the end of yesterday’s session. It formed athird consecutive black candle after oscillating between a low of 14,953.32 pts and a high of 15,055.66 pts, implying that the session was bearish. Overall, we opine that the near-term outlook remains weak. Despite the appearance of 22 Jan’s reversal “Bullish Harami” candlestick pattern, there was no significant bullish follow-through to confirm this pattern. In addition, we note that the 200-day MAV line has slipped by another 9.56 pts, indicating that the overall sentiment is weak.

We had previously highlighted that the FBMSC has turned downwards after it dropped firmly below the 200-day MAV line. Furthermore, our negative view is supported by the appearance of the “Negative Divergence” signal, which suggests that the trend could have turned downwards.

We keep the immediate support at 14,815 pts, derived from the bottom of the “Bullish Harami” pattern. Meanwhile, the next critical support is situated at 14,543 pts, which was 29 Sep 2015’s low. To the upside, the immediate resistance is maintained at 15,441 pts, ie 14 Dec 2015’s low. The next resistance is pegged at the 16,141-pt critical threshold, which was the high of 7 Jan.

Source: RHB Research - 12 Feb 2016