Wednesday, July 21, 2010

FBM KLCI faces tough resistance at 1,350

KUALA LUMPUR: OSK Research said the FBM KLCI faces a tough resistance at the 1,350 'level while the immediate support is still at the 1,332-level, followed by the 1,326-level.

It said on Wednesday, July 21 that the FBM KLCI, had on Tuesday, picked up another 4.32 points and got closer to the 1,350-level, or the 2009-2010 peak, as it was able to shrug off the DJIA's 261.49-point losses two days ago.

'On the chart, it looks like the index is ready to run back above the 1,340-level. We mentioned yesterday that while the DJIA is obviously trending down within a broad downtrend channel and the index is already 10% off the 2009-2010 rally, the FBM KLCI is indeed only about 20 points away from breaking out from the 2009-2010 rally peak.

'To our best memory, this is the first time that we saw such resilient performance from the FBM KLCI in at least eight years. Meanwhile, we maintain our bearish view while watching the DJIA's immediate trend,' it said.

From the current level, there is a tough resistance at the 1,350-level. Immediate support is still situated at the 1,332-level, followed by the 1,326-level.

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