Positive view remains intact above 3,191 pts. Although last Friday’s session was led by the bulls, the FSSTI was unable to close above its prior close of 3,213.48 pts. Instead, the index ended the session at 3,213.48 pts and posted a 12.24-pt loss. However, this does not negate our positive view, given that the FSSTI has continued to hover above the 3,191-pt mark. As long as this level is not taken out, this implies that the bullish bias in 9 Jul’s “Bullish Harami” candlestick pattern remains in play.

Overall, the near 2-month upside bias has not been fully negated yet. Our positive view is also supported by the “Bullish Divergence RSI” reversal pattern in July, which implies that the recent trend has changed from the downside towards upside.

Towards the downside, we set the immediate support at 3,191 pts, obtained from the low of 9 Jul’s “Bullish Harami” pattern. This is followed by the next support at 3,113 pts, which was the low of 19 Apr 2017. Meanwhile, the immediate resistance is maintained at 3,274 pts, or the high of 10 Jul. For the next resistance, look to 3,338 pts, ie 4 Apr’s low.

Source: RHB Securities Research - 3 Sept 2018