The FBM KLCI staged a remarkable intra-day rebound yesterday, recouping losses of some 10 pts during the session and ended with a 14.28-pt gains. A market correction which ends on the same day during a strong upward phase is what we normally view as a sign of great conviction on the market’s near-term upside momentum. Despite the 47.3-pt gain recorded over the past three days, the daily RSI only closed at the 75.6 pt-level yesterday. As the FBM KLCI normally gets overbought beyond the 80 pt-level, this means the door is still open for additional gains.
Needless to say, the near-term technical outlook of the FBM KLCI is firmly bullish now as it is now trading at its historic high and continues to trend higher within the uptrend channel.
From the current level, yesterday’s intra-day high of 1,572 pts is the immediate resistance. To the downside, immediate support lies at the 1,551 pt-level, followed by the 1,532 pt-level.
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