KUALA LUMPUR: OSK Research said the way the market opened and rebounded off the day-low towards the closing on Monday, Feb 28 was somewhat similar to last Monday and Wednesday's trading sessions.
It said on Tuesday, March 1 the FBM KLCI dropped by more than 10 points on Monday but ended up with about two-point gain. As a result, it left behind a 'Long Lower Shadow Line', which indicates the market's desire to stay above the recent low.
OSK Research said in the technical outlook that with this candlestick, there is a possibility that the market may be able to start trending sideways for a while before deciding on a next direction ahead.
Nevertheless, the 'Lower Shadow Line' has not written off the possibility of the market creating a downtrend channel.
'We have already drawn the potential downtrend channel in the above daily chart but it would take a while for the market to confirm it.
'While watching if the index is in the midst of creating a downtrend channel, we are sticking to our Neutral view. Moreover, the market has violated the uptrend line which had previously supported its uptrend for more than six months,' it said.
OSK Research said from the current level, immediate support still lies at the 1,490 pt-level, followed by the 1,472 level. To the upside, it is now eyeing immediate resistance at the 1,500 psychological mark, followed by the 1,524-1,536 area.
It said on Tuesday, March 1 the FBM KLCI dropped by more than 10 points on Monday but ended up with about two-point gain. As a result, it left behind a 'Long Lower Shadow Line', which indicates the market's desire to stay above the recent low.
OSK Research said in the technical outlook that with this candlestick, there is a possibility that the market may be able to start trending sideways for a while before deciding on a next direction ahead.
Nevertheless, the 'Lower Shadow Line' has not written off the possibility of the market creating a downtrend channel.
'We have already drawn the potential downtrend channel in the above daily chart but it would take a while for the market to confirm it.
'While watching if the index is in the midst of creating a downtrend channel, we are sticking to our Neutral view. Moreover, the market has violated the uptrend line which had previously supported its uptrend for more than six months,' it said.
OSK Research said from the current level, immediate support still lies at the 1,490 pt-level, followed by the 1,472 level. To the upside, it is now eyeing immediate resistance at the 1,500 psychological mark, followed by the 1,524-1,536 area.
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