Based on the weekly chart, the FBMKLCI continues to form higher highs and higher lows that indicate an uptrend. The index penetrated the downtrend line to close higher at 1,576.90 on Monday. This bullish movement is supported by an uptick in the RSI. Stronger movements can be expected ahead in tandem with increasing buying pressure as shown by a bullish crossover in the MACD and DMI. We expect the FBMKLCI to continue to move towards the psychological resistance of 1,600 in the near term.
Given that regional markets are back in positive territory, we expect the positive sentiment to spill over to the FBMKLCI. In the short to medium term, we maintain our bullish view as long as the FBMKLCI remains above the psychological 1,500 level and the uptrend lines.
Support: 1,500/ 1,555
Resistance: 1,600 / 1,617
Mohd Fakhrul Asyraq Bin Mohd Aluwi, MSTA, CFTe