Bursa Malaysia has moved lower in two straight sessions, slipping almost 15 points or 0.9 percent along the way.
The Kuala Lumpur Composite Index now rests just above the 1,660-point plateau although it may find traction on Monday.
RHB Retail Research (RHB) in a note today (Sept 30) said the FKLI experienced fresh selling pressure on Friday, resorting to sideways consolidation as it fell 12 pts and closed weaker at 1,658.50 pts.
The index initially began Friday's session at 1,670.50 pts. After touching the 1,673.50 pts day's high, it retraced to the 1,656 pts day's low and closed at 1,658.50 pts.
The latest bearish price action, coupled with the RSI that is rounding downwards, suggest the bullish momentum will taking a longer pause.
The index is likely to pull back in the coming sessions and test the 1,630 pts immediate support.
Breaching this immediate support will attract further selling pressure.
However, in a bullish environment, they believed the support will stay strong.
The index should stage a rebound near the immediate support.
RHB will hold on to the positive trading bias unless the 1,630-pt support level is breached.
Additionally, RHB noted that traders are recommended to retain the long positions initiated at 1,565.50 pts (the close of 6Aug).
To minimise the trading risks, the trailing-stop threshold is placed at 1,630 pts.
The first support locates at 1,630 pts, followed by 1,600 pts.
On the upside, the first resistance is revised to 1,675 pts,
followed by 1,700 pts.
