The newly-developed upside movement remains in play above the 13,649-pt threshold. The FBMSC posted a 91.84 pts loss on Monday to 14,765.63 pts. A black candle was formed after the index oscillated between a low of 14,744.34 pts and high of 14,899.95 pts, which implied that the session was led by the bears. As a result, the FBMSC slipped to its fresh 2-week low. Nevertheless, this does not negate our positive view. From our technical perspective, as long as the 13,649-pt mark is not taken out, we believe the newly-developed upside movement remains in play.

Our positive view is also supported by the fact that the index continues to hover above the 50-day SMA line, which points towards a positive outlook. For the record, we initially detected an early upside reversal movement signal following the appearance of 5 Apr’s “Bullish Harami” candlestick pattern.

We set the immediate support at 14,578 pts, which was obtained from the high of 14 Jun. The next support is pegged at 13,649 pts, or the low of 30 May. On the flip side, our immediate resistance is maintained at 15,188 pts, ie the high of 17 Apr. If this level is taken out, the following resistance is set at the 16,000-pt mark, which is located near the low and high of 9 Feb and 12 Mar.

Source: RHB Securities Research - 28 Aug 2018