KUALA LUMPUR: OSK Research said it is maintaining its Neutral view towards the near term market after the recent gyrations in the FBVM KLCI last Friday and on Monday.
It said on Wednesday, Feb 16 that it did really look like the FBM KLCI had decisively violated the key recent-low of 1,505 when it gave up another 9.5 points last Friday following the 32.08-point retracement the day before. Surprisingly, the index bounced back by slightly more than 10 points on Monday, which basically recouped all the losses recorded last Friday. The index ended the session at the 1,505-level.
'The breakdown at this level previously caused us to shift our near-term view towards the market to neutral. This is because the breakdown at the 1,505-level created a lower high at the same time. That said, the index was also trading at below the uptrend line then,' it said.
'The surprise comeback on Monday may save the market from retracing towards the next strong support situated at the 1,474-level. Meanwhile, we maintain our Neutral view towards the near-term market. Having created a lower high, this is still a possibility that the index may start creating a downward channel and eventually retrace to the next key low of 1,474,' it added.
OSK Research said from the current level, there is immediate support at the 1,500-level, followed by the 1,474-level. To the upside, the 1,505-level is the immediate resistance.
'We will see if the index can return back above the 1,505-level on strong upward momentum while the next resistance is seen at the 1,524-1,536 area,' it added.
It said on Wednesday, Feb 16 that it did really look like the FBM KLCI had decisively violated the key recent-low of 1,505 when it gave up another 9.5 points last Friday following the 32.08-point retracement the day before. Surprisingly, the index bounced back by slightly more than 10 points on Monday, which basically recouped all the losses recorded last Friday. The index ended the session at the 1,505-level.
'The breakdown at this level previously caused us to shift our near-term view towards the market to neutral. This is because the breakdown at the 1,505-level created a lower high at the same time. That said, the index was also trading at below the uptrend line then,' it said.
'The surprise comeback on Monday may save the market from retracing towards the next strong support situated at the 1,474-level. Meanwhile, we maintain our Neutral view towards the near-term market. Having created a lower high, this is still a possibility that the index may start creating a downward channel and eventually retrace to the next key low of 1,474,' it added.
OSK Research said from the current level, there is immediate support at the 1,500-level, followed by the 1,474-level. To the upside, the 1,505-level is the immediate resistance.
'We will see if the index can return back above the 1,505-level on strong upward momentum while the next resistance is seen at the 1,524-1,536 area,' it added.
No comments:
Post a Comment