FTSE Bursa Malaysia Kuala Lumpur Composite Index
A bullish engulfing pattern was spotted on the weekly chart which indicates a bullish reversal pattern. The index has recovered from the low of 1,450 a few weeks ago to close at 1,524.32 on Monday. This bullish momentum is supported by an uptick in the RSI and a bullish crossover in the DMI. Currently, the MACD is on the verge of making a golden cross to the positive signal. We expect the index to move towards the resistance level of 1,576 and the psychological level of 1,600 once it penetrates above the 1,530 level.
With the short-term trends pointing to an uptrend, investors and position traders may wish to remain on the sidelines and wait for a breakout confirmation above the 1,530 level. Investors can accumulate more if the market starts to improve further.
Mohd Fakhrul Asyraq Bin Mohd Aluwi, MSTA, CFTe