Bursa Malaysia bounced higher again on Tuesday, one day after ending the two-day winning streak in which it had gathered almost 10 points or 0.6 percent.
The Kuala Lumpur Composite Index now rests just above the 1,670-point plateau and it may add to its winnings on Wednesday.
RHB Retail Research (RHB) in a note today (Sept 25) said the FKLI managed to gain 7 pts to close at 1,667.50 pts yesterday despite facing selling pressure.
It began trading at 1,662 pts and climbed to the day’s high of 1,671.50 pts before closing at 1,667.50 pts.
Although it charted a narrow-body candlestick, the index closed above the 50-day SMA line, showing that the bulls still have the technical advantage.
The medium-term moving average line continued moving higher, showing that the underlying trend is bullish.
Riding on the renewed momentum, the bulls may attempt to resume upside movement and test the 1,700-pt resistance level.
If the index resorts to a correction, it will fall towards the 1,630-pt support level.
As the index is trading above the stop-loss point and the technical setup remains bullish, RHB held on to the positive trading bias.
RHB noted that traders should keep the long positions initiated at 1,565.50 pts (the close of 6Aug).
To manage the trading risks, the trailingstop is fixed at 1,630 pts.
The first support is marked at 1,630 pts, followed by 1,600 pts.
The first resistance is still pegged at 1,700 pts, followed by the higher resistance at 1,750 pts.
