Bursa Malaysia has finished higher in three straight sessions, collecting almost 40 points or 2.4 percent along the way.
The Kuala Lumpur Composite Index now sits just above the 1,675-point plateau although investors figure to lock in gains on Thursday.
RHB Retail Research (RHB) in a note today (Aug 29) said the FKLI surged past the 1,670-pt resistance to close stronger at 1,681.50 pts on Wednesday – reaffirming the bulls are in control.
The index began trading at 1,653 pts.
It then progressed higher throughout the session, hitting the 1,687-pt intraday high before the close and printing a long bullish candlestick.
The latest price action, coupled with the rising RSI, has strengthened the bullish setup.
After the breakout, expect a follow-through price action to test the next resistance at 1,700 pts.
In the event the FKLI resorts to profit-taking, it may retrace towards 1,630 pts.
Premised on the bullish momentum, they held on to the positive trading bias.
Traders should retain the long positions initiated at 1,565.50 pts, ie the close of 6 Aug.
To manage the trading risks, RHB said the trailing-stop threshold is set at 1,600 pts.
After the bullish breakout, the first support revised to 1,630 pts and followed by the lower support at the above mentioned 1,600 pts.
Meanwhile, the immediate resistance is pegged at 1,700 pts and followed by the 1,750-pt level.
