The FBM KLCI closed at its highest level for the year before the long weekend. Although the market has been stuck in a tight range over the last eight trading days, its trend is still generally up. We had expected the key index to run faster after the previous peak of 1196.46 pts was violated, but most importantly, that the uptrend remains fully intact. Even if the market were to continue to inch up slowly, it is likely that the uptrend will continue to extend further from the current level.
The FBM KLCI’s near-term technical outlook remains firmly bullish. As the daily RSI closed at the 73.2 pt-level last Friday, there is no doubt that there is room left for further upside extension.
From the current level, an immediate resistance lies at the 1,242 pt-level, followed by the 1,296 pt-level. To the downside, there is initial support at the 1,212 pt-level and the next support is found at the 1,196.5-1,200 pt area.
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