No end to upside view as bullish bias is still intact. Yesterday’s session was led by the bears as the FBMSC posted a 13.61-pt loss to 14,752.02 pts. This has marked three consecutive declines and the index is now near the 14,578-pt support. Nevertheless, we make no change to our positive view, as the FBMSC continues to hover firmly above 13,649 pts. As long as the 13,649-pt threshold is not taken out, this implies that the bullish bias since early April continues to exert itself. This is also supported by the positive outlook as the index is steadily above the 50-day SMA line.

In the daily chart above, we also highlight last month’s meaningful “Triple Bottom” and the “Bullish Divergence RSI” reversal patterns. These positive indicators enhance our upside view. Overall, the newly-developed uptrend remains in play.

Our immediate support is maintained at 14,578 pts, which is 14 Jun’s high. In the event this level is taken out, the following support is found at 13,649 pts, which was 30 May’s low. Conversely, we set the immediate resistance at 15,188 pts, or the high of 17 Apr. This is followed by the next resistance at the 16,000-pt threshold, ie near the low and high of 9 Feb and 12 Mar.

Source: RHB Securities Research - 29 Aug 2018