Inching lower towards the 14,815-pt level; sentiment stays weak. Last week, the FBMSC fell 106.40 pts to close at 14,886.80 pts. It printed a black candle after hovering between a low of 14,860.96 pts and a high of 14,979.87 pts, showing that the session was under the influence of the bears. The index has also fallen near the 14,815-pt support level. Overall, we believe the 1-month bearish development is still in effect. Despite the emergence of the “Bullish Harami” candlestick pattern on 22 Jan, there was no significant bullish force in sight. This indicates that the overall near -term downside movement remains in play.

From the immediate technical viewpoint, we think that the index may still retrace further in the coming sessions. Meanwhile, the 200-day MAV line continued to inch lower by 10.47 pts, which points to negative sentiment and enhances our weak outlook.

Presently, the immediate support is pegged at 14,815 pts, obtained from the bottom of the “Bullish Harami” pattern. Our next critical support lies at 14,543 pts, ie 29 Sep 2015’s low. On the flip side, we set the immediate resistance at 15,441 pts, which was 14 Dec 2015’s low. Meanwhile, our critical resistance is maintained at the 16,141-pt threshold, ie the high of 7 Jan.