Tuesday, February 22, 2011

OSK Research: Immediate support for FBM KLCI at 1,505

KUALA LUMPUR: OSK Research said the FBM KLCI had on Monday, Feb 21 displayed one of the most volatile sessions in recent months.

In its technical report on Tuesday, Feb 22, it said the FBM KLCI started off with a gain of about five points but dipped into negative territory not too long after and even lost as much as 12.02 points at one point during the day.

The market found support at the previous major recent-low of 1,505, and then started to bounce back, eventually ending with a 8.29-point gain.

'Using the potential downtrend channel as guidance, yesterday's strong push off the 1,505-level was capped right below the downtrend line of the potential channel. Hence, there is still a possibility that the index may create a downtrend channel. We stick to our Neutral view towards the near term market for now,' it said.

OSK Research said the retracement that started since the beginning of the year from the historic high has not harmed the market's mid-term uptrend. Hence, the mid-term technical outlook of the FBM KLCI remains firmly bullish.

'From the current level, there is still an immediate support at the 1,505-level, followed by the 1,500-psychological level. To the upside, there is initial resistance at the 1,524-1,536 area,' it said.

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