Bearish view remains intact below 3,296 pts. The FSSTI jumped 37.08 pts to close at 3,277.58 pts. It left a white candle above the 20-day SMA line, after oscillating between a low of 3,249.73 pts and high of 3,283.92 pts. This shows that yesterday’s session was a bullish one. However, until the index is able to climb firmly above the 3,296-pt mark, we think that the current correction has not been fully negated yet. At this juncture, there is no change to our bearish view.

As long as we do not see a strong upside development in the daily chart above, this implies that the momentum in 9 Jul’s “Bullish Harami” candlestick pattern is still unconfirmed. Our downside view is also supported by the fact that the 14-day RSI indicator continues to fluctuate below the 50-pt neutral level at 47.46 pts – an indication that market strength is still weak.

Towards the downside, we set the immediate support at 3,191 pts, the low of 9 Jul’s “Bullish Harami” pattern. This is followed by the 3,113-pt support mark, located at the low of 19 Apr 2017. Conversely, our immediate resistance stays at 3,296 pts, obtained from 27 Jun’s high. For the next resistance, look to 3,338 pts, or 4 Apr’s low.

Source: RHB Securities Research - 20 Jul 2018