Another increase, bullish bias is consistent. After the positive development on 13 Feb, the FBMSC recorded another increase yesterday as it rose 62.32 pts to close at 16,522.69 pts. It tested the 16,650-pt resistance during yesterday’s session, while oscillating between the low of 16,468.61 pts and the high of 16,547.22 pts. This indicates that the bullish development continues to be persistent and could possibly lift the index further.
Currently the index is recovering after the previous retracement, which was seen from August to December last year. The positive movement continued to grow in the last two months, and the FBMSC is approaching a 3,000-pt gain. This implies
that the bullish influence is firm, thereby enhancing positive growth. Overall, the newly-formed uptrend since 17 Dec is deemed stable and encouraging at the present. As the index has not gone through a significant drop so far, we believe that the bottom at 13,868 pts is solid.
We maintain our immediate support at the 16,241-pt mark, which was 23 Jan’s high, while the critical support is at 15,810 pts, ie the session’s low on 29 Jan. Meanwhile, the immediate resistance is pegged at the 16,560-pt threshold, ie the
bottom of 21 Nov 2014. For the critical resistance, look for the next level at 16,894 pts, derived from the top of 19 Nov 2014’s trading session.
by RHB Retail Research 17/01/15