Short-term downside movement remains intact. The FBMSC rebounded by 82.29 pts at the end of yesterday’s session. It opened higher at 14,940.72 pts and closed at 14,969.09 pts, implying that the session was bullish. However, as the index is still hovering firmly below the 200-day MAV line, this indicates that the positive momentum was a minor one only. From atechnical standpoint, we view that the “Bullish Harami” candlestick pattern on 22 Jan as still unconfirmed, as there is no significant bullish development occurring yet. As such, we believe that the newly-developed downside movement remains in play.

Overall, chances are still promising that the bearish movement could still be extended once the breather above the 14,815-pt level ends. Our negative view is supported by the 9.99-pt loss on the 200-day MAV line, which points to a negative sentiment. Furthermore, while the RSI Indicator has not fallen below the 30-pt oversold level, this may suggest that the bears have more room to manoeuvre.

We keep the immediate support at the 14,815-pt level, ie the bottom of the “Bullish Harami” pattern. The next support is pegged at 14,543 pts, which was 29 Sep 2015’s low. Meanwhile, we set the immediate resistance at 15,441 pts, located at the low of 14 Dec 2015. This is followed by the critical resistance at the 16,141-pt mark, derived from the high of 7 Jan.

Source: RHB Research - 16 Feb 2016