Correction remains in play for FBM Small Cap Index, says RHB Retail Research

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KUALA LUMPUR (March 7): RHB Retail Research said the bearish view for the FBM Small Cap Index (FBMSC) remains intact, as no firm upside movement is in sight.

In a technical analyser today, the research house said after six declines in a row, the FBMSC finally rebounded by 47.27 points yesterday to 16,165.85 points.

It said this led the index to close above the previous 16,120-point resistance.

"Nevertheless, this minor increase does not change our bearish view.

"Based on the current daily chart, a firm break above the 21-day simple moving average line is needed in order to confirm that the bulls have regained control of market sentiment from the bears.

"As long as no firm upside development is in sight, we opine that the 1-week correction has not reached its end yet," it said.