KUALA LUMPUR: OSK Research said when the FBM KLCI shot up by as much as 14.27 points in intra-day trading on Tuesday, Dec 28 it thought that this was the much awaited signal confirming the violation of the 1,510 level which occurred last Wednesday.
Nevertheless, the index retraced its steps after hitting the intra-day high, ending with only a 5.72-point gain, which meant that than more than 50% of yesterday's gains had evaporated.
'While it is an encouraging sign in that the index finally added more points above the 1,510 level, yesterday's intra-day performance could also be viewed as a sign of weakness as the FBM KLCI retraced more than 50% from the intra-day high,' it said in its technical outlook for the KLCI on Wednesday, Dec 29.
OSK Research also said the breakout from the 1,510 level still could not be decisively confirmed. However, the 5.72-point gain did help to lower the odds of the index continuing to trend sideways between the 1,474 level and the 1,510 level.
'Regardless of the market action in the vicinity of 1,510, our view towards the near-term market has been straightforward. We will maintain our firmly bullish bias view towards the near-term market until uptrend line 1 is decisively violated.
'The FBM KLCI's historic high of 1,532 is now the only resistance which we can detect. To the downside, the 1,510 level is still the immediate support while another support is seen at the 1,485 to 1,492 area,' it said.
Nevertheless, the index retraced its steps after hitting the intra-day high, ending with only a 5.72-point gain, which meant that than more than 50% of yesterday's gains had evaporated.
'While it is an encouraging sign in that the index finally added more points above the 1,510 level, yesterday's intra-day performance could also be viewed as a sign of weakness as the FBM KLCI retraced more than 50% from the intra-day high,' it said in its technical outlook for the KLCI on Wednesday, Dec 29.
OSK Research also said the breakout from the 1,510 level still could not be decisively confirmed. However, the 5.72-point gain did help to lower the odds of the index continuing to trend sideways between the 1,474 level and the 1,510 level.
'Regardless of the market action in the vicinity of 1,510, our view towards the near-term market has been straightforward. We will maintain our firmly bullish bias view towards the near-term market until uptrend line 1 is decisively violated.
'The FBM KLCI's historic high of 1,532 is now the only resistance which we can detect. To the downside, the 1,510 level is still the immediate support while another support is seen at the 1,485 to 1,492 area,' it said.
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