Bullish expectation remains in play above 3,191 pts. The FSSTI registered a 21.93-pt gain to close at 3,247.55 pts yesterday. During the session, the index rose to its intraday high of 3,263.14 pts and tested the 20- day SMA line. Technically speaking, we believe that the bulls are still in control of market sentiment. As long as the FSSTI is able to stay above 3,191 pts, this implies that the bullish bias in the appearance of 9 Jul’s “Bullish Harami” candlestick pattern is exerting itself. Overall, we make no change to our positive view.

In line with the resilient momentum, we think that the index may breach above the 20-day SMA line in the coming sessions. Our upside view is also supported by last month’s “Bullish Divergence RSI” reversal pattern, suggesting that the trend has shifted from downside to upside.

Our immediate support is kept at 3,191 pts, located at the low of 9 Jul’s “Bullish Harami” pattern. The following support is pegged at the 3,113-pt threshold, which was the low of 19 Apr 2017. Towards the upside, we set the immediate resistance at 3,274 pts, or the high of 10 Jul. This is followed by the next resistance at the 3,338-pt mark, obtained from the low of 4 Apr.

Source: RHB Securities Research - 29 Aug 2018