The market continued to add on points since reversing its trend at the uptrend line. The FBM KLCI has already stretched its winning streak for four consecutive days. Meanwhile, there are no signs of the index being unable to stretch its gains further from here. Despite the huge gains recorded since last Thursday, the daily RSI closed at the 75.1 pt-level yesterday, which means that the door is still open for more gains. The FBM KLCI normally gets overbought beyond the 80 pt-level.
We are not sure if the market would consolidate after having advanced close to 40 pts over the last four sessions, but we would not be surprised to see the index extending those gains for a few more days as the market is still not overbought.
Meanwhile, the near-term technical outlook of the market remains bullish. We continue to eye a tough resistance at the 1,395 pt-level while the 1,400 pt-level would be the psychological hurdle for the market. Initial support is now seen at the 1,360 pt-level, followed by the 1,351 pt-level.