KUALA LUMPUR: OSK Research said the'' immediate technical outlook of the FBM KLCI remains bullish.
In its technical outlook issued on Tuesday, Aug 3 it said the FBM KLCI went up by slightly more than 8 points on Monday but ended the session with a gain of only 2.68 points.
As a result, the index left behind a candlestick with a long upper shadow line, which could potentially turn out to be a bearish reversal pattern. Until it is proven so, the FBM KLCI's current technical posture remains very healthy.
Moreover, the broader market sentiment was positive and the futures index also went up by more than 10 points on Monday.
'The immediate technical outlook of the FBM KLCI remains bullish. The fact that the key index could surpass the 1,350-level after the three previous failed attempts over the March-May period is a very positive technical development,' it said.
OSK Research said the index's daily RSI closed at the 71 point-level last Friday, which suggests that the room is still open for additional gains. The benchmark index usually reaches an overbought condition at above the 80 point-level.
'From the current level, the next tough resistance lies at the 1,395-level while initial support is still seen at the 1,350-level, followed by the 1,332-level and the 1,326-level,' it said.
In its technical outlook issued on Tuesday, Aug 3 it said the FBM KLCI went up by slightly more than 8 points on Monday but ended the session with a gain of only 2.68 points.
As a result, the index left behind a candlestick with a long upper shadow line, which could potentially turn out to be a bearish reversal pattern. Until it is proven so, the FBM KLCI's current technical posture remains very healthy.
Moreover, the broader market sentiment was positive and the futures index also went up by more than 10 points on Monday.
'The immediate technical outlook of the FBM KLCI remains bullish. The fact that the key index could surpass the 1,350-level after the three previous failed attempts over the March-May period is a very positive technical development,' it said.
OSK Research said the index's daily RSI closed at the 71 point-level last Friday, which suggests that the room is still open for additional gains. The benchmark index usually reaches an overbought condition at above the 80 point-level.
'From the current level, the next tough resistance lies at the 1,395-level while initial support is still seen at the 1,350-level, followed by the 1,332-level and the 1,326-level,' it said.
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