Bulls still lack fresh catalysts to boost the momentum. The FBMSC added another 45.40-pt gain, as it opened at 15,139.35pts and closed at 15,177.82 pts. This makes it its third consecutive increase within a week, and implies that the bulls are gaining momentum. Nevertheless, as long as the index is unable to challenge the 15,441-pt resistance level firmly, we deem this as the immediate sentiment lacking fresh catalysts that could boost the positive development. At the same time, this also leaves 22 Jan’s “Bullish Harami” candlestick pattern as unconfirmed. Overall, we opine that the near-term outlook remains weak.

We initially thought that the bears had taken control, when the FBMSC plunged significantly below the 200-day MAV line last month. Our negative view was also supported by the appearance of the “Negative Divergence” signal, which suggests that the trend may have turned downwards.

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