Bursa Malaysia has climbed higher in back-to-back sessions, gathering almost 10 points or 0.6 percent along the way.
The Kuala Lumpur Composite Index now rests just beneath the 1,670-point plateau although it may be stuck in neutral on Monday.
RHB Retail Research (RHB) in a note today (Sept 23) said that the FKLI printed a fresh “higher high” closing on Friday, climbing 10 pts to close stronger at 1,674 pts – reaffirming the bullish technical setup is in play.
The index initially started the session at 1,664.50 pts.
It then rose to the 1,675.50 pts day’s high before closing at 1,674 pts.
The RSI is pointing upwards, suggesting the bullish momentum is gaining speed now.
Riding on the momentum, the index may travel upwards to test the 1,700-pt resistance level.
Breaching this psychological resistance will attract fresh buying pressure and enhance the bullish structure.
Meanwhile, strong support has formed at the 1,630-pt level.
Since the bulls are still in control now, they will retain the positive trading bias.
Traders should hold on to the long positions initiated at 1,565.50 pts or the close of 6 Aug.
To minimise the trading risks, the trailing-stop threshold is fixed at 1,630 pts.
The immediate support is still marked at 1,630 pts,followed by 1,600 pts.
On the upside, the immediate resistance is revised higher to 1,700 pts, followed by 1,750 pts.
