Tuesday, January 11, 2011

OSK Research: FBM KLCI retracement not excessive

KUALA LUMPUR: OSK Research said unlike the last two sessions, the FBM KLCI had on Monday, Jan 10 eventually failed to hold on to part of the last week's gains and ended the day with a los off about nine points.

'Nevertheless, yesterday's retracement was not excessive considering that the index had put on some 45 points on the first week of 2011,' it said in its technical outlook on Tuesday, Jan 11.

OSK Research said it had drawn the new resistance line which is projected from the uptrend line.'' As a result, it had a new uptrend channel on the daily chart.

'In fact, we will view the market action within the uptrend channel as insignificant as we will continue to expect the FBM KLCI to trend higher as long as it maintains a posture within the channel,' it said.

The research house said from the current level, last Friday's intra-day high of 1,572 is still the immediate resistance. To the downside, immediate support lies at the 1,551-level, followed by the 1,532-level.


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