Bulls continue to dominate the market, extending the bullish view. The FBMSC rebounded by 22.21 pts to 13,834.87 pts yesterday. The index has managed to hold above the 13,719-pt support. From our technical perspective, the bullish bias since early April remains in play, given that the FBSMC has not slipped below this support yet. There is a possibility a “Triple Bottom” reversal pattern will appear if a strong rebound near the aforementioned 13,719 pts occurs in later sessions. At this juncture, the bulls still dominate market sentiment.

For the record, we initially saw an early signal that a potential upside movement was to take place. This was after the appearance of two meaningful 2-year low reversal signals: 5 & 6 Apr’s “Bullish Harami” and “Hammer” patterns. Overall, there is no change to our positive view.

To the downside, we keep the immediate support at 13,719 pts, or the low of 5 Apr’s “Bullish Harami” pattern. The following support is found at the 13,116-pt mark, which was the low of 25 Aug 2015. Conversely, the immediate resistance is found at 14,578 pts – this was obtained from 14 Jun’s high. We are of the view that, if the FBMSC breaches above this level, we will see the 15,188-pt resistance mark, or 17 Apr’s high.

Source: RHB Securities Research - 11 Jul 2018