Outlook- Bursa Malaysia resumed the upward thrust amid fresh bargain-hunting buying after a brief correction, navigating the FBM KLCI to the highest level since April 26, last year during intra-week trading.

Sentiment was boosted by a big rally on Wall Street after Trump promised to make a major tax announcement to lower the burden on businesses, though he offered no details.

If he can bulldoze that through, with a more favourable tax regime, the move will certainly bode well for the US markets and global equities.

When that happens, investors can expect the local bourse to trade higher, riding on the overseas bullish tone.

Based on the daily chart, the local bourse is seen trending upward nicely, albeit on a gradual pace, with the key index breaching the 1,700 points psychological barrier during intra-day session yesterday.

In theory, the breakout is likely to open the doors for more advances, targeting the next upper resistance of 1,730 points, which is a heavy barrier.

A clear “bomb out” of this strong hurdle will set the bulls free.

On the opposite, a futile attempt will see the key index retracing on fresh correction mode.

So, look out for that.

Technically, the daily slow-stochastic momentum index and its weekly peer, as well as the 14-day relative strength index are painting an increasing overbought condition, but they show no sign of backing off just yet, implying the FBM KLCI will probably firm this week.

Support is seen at 1,680 points, followed by 1,640 points.