KUALA LUMPUR: Kenanga Research expects FTSE Bursa Malaysia KLCI (FBMKLCI), on technical aspect, to move upward in the near term to potentially touch 1,783.
“While key simple moving average (SMAs) and indicators continued to remain in a negative state, the FBMKLCI’s overall technical picture could suggest a move upwards in the near-term, with it currently at near the bottom of its range-bound trading,” the research house said in a note.
The index is in the midst of testing its 1,750 support, it added.
“From here, we see the potential for a move to 1,783 before encountering a stronger level of resistance at 1,796.”
However, Kenanga Research said a decisive break below its aforementioned immediate support at 1,750 is deemed to be highly negative, with the index potentially capitulating towards its lower support at 1,729.
FBMKLCI opened on a positive note today, 1.04 points higher to 1,750.03 from Tuesday’s close of 1,748.99.
Asian markets mostly gain following a positive lead from Wall Street on Wednesday. However, bucking the trend, the FBMKLCI hovered mostly sideways in the red throughout the session. It lost 5.38 points to end lower at 1,748.99.
Broad market sentiment was slightly negative, with 395 gainers against 468 losers, while 415 counters traded unchanged.