FBM Fledgling index (fledgling) could be potentially heading higher following a breakout above the triangle resistance recently.
Fledgling is an index that consists of companies that is not the top 98% of the Bursa Malaysia universe.
Last week, prices moved out from the consolidation pattern after trading sideways for the past one and half year. Coupled with prices trading within the LT uptrend channel, higher prices are likely.
Prices could climb higher to test the 16,833 high.
Closing above this level would send prices towards 18,291, the 138%FR.
A drop below 15,968 would negate our bullish view. However, historically, if there is a divergence between FBMKLCI and fledgling, it is a signal that the market is about to turn around, especially at the top.
With fledgling likely heading higher and a LT bearish view on the FBMKLCI (look Crossroad section), fledgling could make the final leg up before the bear takes over. Buyers beware. (Read Report)
Source : CIMB Research