Little has changed after yesterday’s listless trading session, during which the FBM KLCI was stuck within a 4-pt trading range. The index again ended the session with a close at above the 1,510 pt-level.
We have been talking about the importance of breaking above the 1,510 pt-level. Although this level has been violated, the market still needs another round of strong upward momentum to confirm the breakout. If not, there is still a possibility of the index remaining stuck within the recent trading band ranging from the 1,474 pt-level to the 1,510 pt-level.
We will maintain our firmly bullish bias view towards the near-term market until uptrend line 1 is decisively violated.
The FBM KLCI’s historic high of 1,532 pts is now the only resistance which we can detect. To the downside, the 1,510 pt-level is still the immediate support while another support is seen at the 1,485- 1,492-pt area.