FBMKLCI Chart & Summary (CIMB)

The FBMKLCI gapped up at the opening bell and stayed positive throughout the day. Yesterday’s strong run-up closed the 1,451-1,458 gap and this helped to eliminate the bearish island reversal pattern. As a result, we think the index could still inch higher in the coming days, likely to test its resistance at 1,480 again and possibly even test the 1,490-1,505 gap. However, investors should remain vigilant as MACD histogram bars are still negative. Its 30-day SMA (now at 1,426) is still its immediate support, followed by 1,406 and the psychological 1,400 levels.