KUALA LUMPUR: CIMB Equities Research sees the resistance for the FBM KLCI at 1,360 to 1,388 while its support is between 1,287 and 1,219.
Itsaid on Monday, April 5 that last Friday, prices continued on its strong climb, taking out the resistance trend line drawn from the Octover 2009 high to the January 10 high.
"The breakout likely lifts our alternative count to the forefront as it has nullified our previous preferred count. We view this move as part of the final zigzag where it has 3 waves, that is Wave-a, b and c. Wave-c has potential stopping points at 1,360 and 1,388 and 1,405.
"This week, expect prices to work its way higher. However, traders need to be extra cautious as bearish divergence signals as starting to show on both its MACD and RSI. Keep an eye on potential reversal patterns. If there are none, then it is likely up and up for now," it said.