Last Thursday, the index slipped below uptrend line 2 during the session but managed to rebound back above the trend line at the close. This was followed through last Friday where the market continued to add another 10.82 pts. In the meantime, it still looks like the market could build an uptrend at above the uptrend line 2.
The immediate technical outlook of the FBM KLCI remains bullish. Last Friday’s market action was very positive in terms of keeping alive hopes of constructing an uptrend at above uptrend line 2.
There is tough resistance at the 1,395 pt-level, while initial support is still seen at the 1,350 pt-level, followed by the 1,332 pt-level and 1,326 pt-level. The 1,350 pt-level represents the previous peak of the 2009-2010 rally.