BURSA Malaysia is poised to trend higher this week with the FTSE Bursa Malaysia KLCI (FBM KLCI) testing its all-time high of 1,826.22 level on the back of the United States debt breakthrough and the 2014 Budget on Friday.
Analysts say stocks should get the momentum from the strong performance of global equity markets, after the US Congress approved an 11th-hour deal to reopen the federal government and raise the debt ceiling, thus averting a potential default.
"A higher close last Friday should signal a good break of this level and will keep the rebound," an analyst said, adding that the index is on a longer-term uptrend, too, which remains in place due to the unbroken series of higher lows since 2009.
They believe that buying should continue and a firm upside bias may keep the index above 1,790 points.
However, a failure to get above 1,800 points, followed by a closing below 1,790 points, could indicate another failure of testing the psychological mark.