Tuesday, November 30, 2010

OSK Research: Near term market still bullish

KUALA LUMPUR: OSK Research said the FBM KLCI rebounded from as much as an 18.03-point loss at the day-low to close Monday, Nov 29 with a 3.90-point gain.

'It was a 21.93-point rebound that will go down in history as one of the most impressive rebounds for the 2009/2010 bull market,' said the research house in its technical outlook on Tuesday, Nov 30.

OSK Research said as a result, the market ended the day at above the key recent low of 1,488 points. Monday's price action once again proves the importance of the 1,488-level. Nevertheless, the benchmark is still stuck within the potential downtrend channel.

'Remember the downtrend channel will guide us as to when the consolidation phase will end. There is still a possibility of the key index retracing towards uptrend line 1 as long as it remains stuck within the potential downtrend channel.

'Note that a break below the 1,488 pt-level will likely invite strong selling pressure and confirm the breakdown from uptrend line 2. However, the market can still avoid from falling further by maintaining a posture at above the 1,488 pt-level and stage a breakout from the downtrend channel,' it said.

The research house said its view towards the near-term market has been the same, that is, its technical landscape will remain bullish as long as the index is still trading at above uptrend line 1.

OSK Research added it'' was still eyeing the 1,500-level as the next resistance, followed by the 1,512-1,514 area. Immediate support is now seen at the 1,488 level, followed by the 1,479 level.


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