Technical Highlights

Daily Trading Strategy : Remain cautious before a breakout of the final key resistance…

- As the FBM KLCI continued to chalk up fresh year high of 1,277.81 yesterday, and still trading within the recent uptrend, further upside can be expected towards the UTL near 1,286 in the near term.

- However, as shown on the daily candlesticks chart and the momentum indicators, risk of yet another profit-taking pullback today cannot be totally ignored.

- In other words, we expect selling pressure to continue dragging the broader market sentiment, while sporadic buying supports seen on selective index-linked heavyweights will likely persist.

- All in, the FBM KLCI must still push harder to remove the final key resistance at the UTL near 1,286, before its technical picture can turn even more bullish on the short-to-medium-term duration.

- Only upon a total removal of the UTL, the index will head towards the 1,300 psychological level.

- Immediate support is seen near the 10-day SMA of 1,253, followed by the critical technical level of 1,250.