The index may still inch up, in line with the ongoing bullish bias. The FBMSC ended at 15,096.59 pts at the end of last Friday’s session and posted a 12.51-pt increase. A “Doji” candlestick pattern was formed, which implied that the session was an indecisive one. We now see the index heading north and, based on the current technical landscape, chances are high that the FBMSC will test the 15,188-pt resistance in later sessions. Our positive view is also supported by the fact that the index is hovering firmly above the 50-day SMA line, which points towards a positive outlook.

The daily chart shows that the bullish bias we have seen since early April remains firmly in play. From our technical standpoint, the bulls are dominating market sentiment. This is especially after the appearance of the “Triple Bottom” reversal pattern, which suggests the trend has shifted towards the upside from the downside.

Our immediate support is at 14,578 pts, which is located at the high of 14 Jun. This is followed by the next critical support at the 13,649-pt threshold, or the low of 30 May. On the flip side, we set the immediate resistance at 15,188 pts – this was 17 Apr’s high. If this level is taken out, the following resistance is pegged at 16,000 pts, which was near the low and high of 9 Feb and 12 Mar.

Source: RHB Securities Research - 13 Aug 2018