Monday, January 3, 2011

OSK Research: Eyes still on FBM KLCI historic high

KUALA LUMPUR: OSK Research said the FBM KLCI ended the last day of 2010 with a slightly more than five points loss but the benchmark index still ended the session at above the 1,510-level.

It said on Monday, Jan 3 that it mentioned last Thursday that as the index was already more than 14 points above the 1,510 level, this level can be considered as having been violated.

However, OSK Research also said that a break above last Wednesday's intra-day high of 1,526 would make it more comfortable with the violation of the 1,510-level. This is because market action such as the evaporating of more than 50% of last Tuesday's gains on that day is normally viewed as a sign of weakness.

'Regardless of the market action in the vicinity of 1,510, our view towards the near-term market has been straight-forward. 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 still 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 1,485-1,492 area,' it said.


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