Bursa Malaysia has climbed higher in back-to-back sessions, jumping more than 55 points or 3.5 percent along the way.
The Kuala Lumpur Composite Index now rests just above the 1,590-point plateau although it’s likely to open under pressure on Thursday.
At 9.16am, the FBMKLCI dipped -6.67 points to open at 1,585.96.
RHB Retail Research (RHB) in a note today (Aug 8) said the FKLI is now firmer above the long-term moving average line after crossing above the 1,590-pt resistance level to close higher at 1,592 pts.
Yesterday, the index started off trading at 1,566 pts.
It rose to the 1,599 pts day’s high before the close.
RHB noted that the latest bullish candlestick, coupled with the RSI rounding upwards, affirmed the bullish momentum is still in play.
The bulls are eyeing to test the next resistance at the 1,610-pt level.
Despite the index undergoing positive price action, they do not discount possibilities that it may resort to profit-takings since it has surged higher for the past two sessions.
In the event selling pressure increases, the index may find support at the 1,570-pt level.
As long as it stays above the 1,550-pt level, the technical setup will remain bullish.
Since the bulls are still in control, RHB said they held on the positive trading bias.
RHB recommended traders to retain the long positions initiated at the close of 6 Aug, ie 1,565.50 pts.
To manage the trading risks, the stop-loss threshold is raised to 1,550 pts from 1,520 pts.
After the bullish breakout, the first support is adjusted higher to 1,570 pts, followed by 1,550 pts.
Meanwhile, the first resistance has been changed to 1,610 pts.
The higher resistance is pegged at 1,630 pts.
