Note that the KLCI has extended into the overbought territory after yesterday’s closing. Overnight, the US market took a breather following the recent strong surge. We are not sure if the KLCI will consolidate. In any case, the index’s near-term technical outlook has shifted to firmly bullish
following the last Friday’s breakout. We are now eyeing the 200-day MAV line as the immediate upside target. To re-cap, the relevant review from last Friday’s review is as follow: ”After 15 months of waiting, the KLCI’s near-term technical outlook turned firmly bullish for the first time since the KLCI topped out at the historic high of 1524 pts. The breakout has completely overturned the bearish technical landscape.”
From the current level, look for an immediate resistance at the 937 pt-level followed by the 200-day MAV line, which is now situated at the 976 pt-level. To the downside, an initial support is detected at the 900-905 pt-area followed by the 50-day MAV line and the 100-day MAV line, which are now lying at the 879 pt-level.