KUALA LUMPUR: RHB Research said the medium- to long-term technical outlook for the FBM KLCI will remain positive if the index manages to sustain at above the 1,450 level and the 40-day SMA near 1,453.
In its daily trading strategy on Tuesday, Oct 19 it said in order for the index to stay positive, the index must quickly reclaim the 10-day SMA, and to push over the 1,500 psychological level in the next few sessions to end the current profit-taking leg.
In its review of the Monday performance, it said with more investors taking profit following the uninspired 2011 Budget announcement on Friday, coupled with the weakness in the regional markets, the FBM KLCI eased lower on follow-through profit-taking momentum on Monday.
From the technical perspective the closing to below the important 10-day SMA of 1,485 and the poorer momentum readings, are suggesting more downside risk for the FBM KLCI in the near term.
And if there is no immediate rebound to above the 10-day SMA today, the index could retrace towards the recent technical gap at 1,472.32 - 1,476.05, and even towards the key pivotal point of 1,450 next.
'However, as reiterated earlier, the medium- to long-term technical outlook will remain positive if the index manages to sustain at above the 1,450 level and the 40-day SMA near 1,453,' it said.
In its daily trading strategy on Tuesday, Oct 19 it said in order for the index to stay positive, the index must quickly reclaim the 10-day SMA, and to push over the 1,500 psychological level in the next few sessions to end the current profit-taking leg.
In its review of the Monday performance, it said with more investors taking profit following the uninspired 2011 Budget announcement on Friday, coupled with the weakness in the regional markets, the FBM KLCI eased lower on follow-through profit-taking momentum on Monday.
From the technical perspective the closing to below the important 10-day SMA of 1,485 and the poorer momentum readings, are suggesting more downside risk for the FBM KLCI in the near term.
And if there is no immediate rebound to above the 10-day SMA today, the index could retrace towards the recent technical gap at 1,472.32 - 1,476.05, and even towards the key pivotal point of 1,450 next.
'However, as reiterated earlier, the medium- to long-term technical outlook will remain positive if the index manages to sustain at above the 1,450 level and the 40-day SMA near 1,453,' it said.
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