KUALA LUMPUR: OSK Research is maintaining its Neutral view towards the near-term market for now.
It said on Monday, Feb 21 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, we continue to look for initial resistance at the 1,524-1,536-area,' it said.
Commenting on the losses recorded'' by the KLCI, which fell about 47 points on Feb 9 to 11, the nine points gains on Feb 18 may seem encouraging, but it could just be a technical rebound from the nearly 50 points of losses recorded previously.
'Even though the FBM KLCI has now returned back above the previous recent low of 1,505 level in a convincing manner, we still cannot tell if the index has bottomed out,' it said.
OSK Research said last week, it drew a potential downtrend channel which it hoped could help in reading the near-term market direction.
Having created a lower high last week, there is a possibility that the index may start creating a downtrend channel and eventually retrace to the next key low of 1,474.
'Last Friday's rebound emerged within our potential downtrend channel and did not clearly signal the end of the retracement starting at the historic high. Also, do not forget that the index has violated the strong uptrend line,' it said.
It said on Monday, Feb 21 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, we continue to look for initial resistance at the 1,524-1,536-area,' it said.
Commenting on the losses recorded'' by the KLCI, which fell about 47 points on Feb 9 to 11, the nine points gains on Feb 18 may seem encouraging, but it could just be a technical rebound from the nearly 50 points of losses recorded previously.
'Even though the FBM KLCI has now returned back above the previous recent low of 1,505 level in a convincing manner, we still cannot tell if the index has bottomed out,' it said.
OSK Research said last week, it drew a potential downtrend channel which it hoped could help in reading the near-term market direction.
Having created a lower high last week, there is a possibility that the index may start creating a downtrend channel and eventually retrace to the next key low of 1,474.
'Last Friday's rebound emerged within our potential downtrend channel and did not clearly signal the end of the retracement starting at the historic high. Also, do not forget that the index has violated the strong uptrend line,' it said.
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