KUALA LUMPUR: OSK Research said it is maintaining its Neutral view towards the near-term market.
It said the FBM KLCI gapped down by nearly 9.0 points at the opening on Wednesday, Feb 16 but also made an attempt to bounce back. The index finally eked out a 0.97-point gain and also closed slightly above the much talked about 1,505-level.
OSK Research said on Thursday, that based on Wednesday's market action, it believes no one can tell for sure if it was a decisive return back above the 1,505-level. Anyhow, whether the previous major recent-low of 1,505 has been convincingly violated or not is no longer much of concern to it.
'Our focus is now on the lower high which has been created at below the uptrend line. This is because having created a lower high, there is a possibility that the index may start creating a downtrend channel and eventually retrace to the next key low of 1,474.
'We maintain our Neutral view towards the near-term market. In the meantime, while it does look like the index might be creating a downtrend or a downtrend channel, it is still too early to confirm this statement,' said the research house.
OSK Research said from the current level, there is immediate support at the 1,500-level, followed by the 1,474-level. Although the index closed slightly above the 1,505-level, it still viewed this level as the immediate resistance.
'We would still want to see if the index can return back above the 1,505-level on strong upward momentum while next resistance is seen at the 1,524-1,536'' area,' it said.
It said the FBM KLCI gapped down by nearly 9.0 points at the opening on Wednesday, Feb 16 but also made an attempt to bounce back. The index finally eked out a 0.97-point gain and also closed slightly above the much talked about 1,505-level.
OSK Research said on Thursday, that based on Wednesday's market action, it believes no one can tell for sure if it was a decisive return back above the 1,505-level. Anyhow, whether the previous major recent-low of 1,505 has been convincingly violated or not is no longer much of concern to it.
'Our focus is now on the lower high which has been created at below the uptrend line. This is because having created a lower high, there is a possibility that the index may start creating a downtrend channel and eventually retrace to the next key low of 1,474.
'We maintain our Neutral view towards the near-term market. In the meantime, while it does look like the index might be creating a downtrend or a downtrend channel, it is still too early to confirm this statement,' said the research house.
OSK Research said from the current level, there is immediate support at the 1,500-level, followed by the 1,474-level. Although the index closed slightly above the 1,505-level, it still viewed this level as the immediate resistance.
'We would still want to see if the index can return back above the 1,505-level on strong upward momentum while next resistance is seen at the 1,524-1,536'' area,' it said.
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