The index extended its gains for the fifth consecutive trading day yesterday. In the course of this winning streak, the FBM KLCI has picked up some 45 pts. The market has been going up non-stop since gaining support at the new uptrend line last Thursday.
The FBM KLCI has now stretched itself nearer to the 80 pts overbought territory. Another one or two days of massive gains will see the market entering the overbought zone. So far, since the bull market began in March 2009, the index had never been able to stretch its gains within overbought territory.
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.