No change to our positive view above the significant 13,649-pt mark. The FBMSC dipped 50.09 pts to 14,701.93 pts yesterday. This weak performance led the index closer to the 14,578-pt support. Nevertheless, as long as the significant 13,649-pt mark is not taken out, we make no change to our positive view. From our technical perspective, the FBMSC is merely taking a breather below 15,188 pts. Our positive view is also supported by the fact that the index is hovering steadily above the 50-day SMA line, which points towards a bullish outlook.

Presently, we believe the bulls are still in firm control of market sentiment. This is especially after the appearance of the meaningful “Triple Bottom” and the “Bullish Divergence RSI” reversal patterns in July – an indication that the trend has shifted to the upside from downside.

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

Source: RHB Securities Research - 30 Aug 2018