Published: Thursday June 21, 2012 MYT 8:55:00 AM
OSK Research: KLCI’s near-term outlook firmly bullish
KUALA LUMPUR: OSK Retail Research is eyeing an immediate resistance for the FBM KLCI at the 1,600 psychological mark, followed by the 1,605 level.
“To the downside, the 1,582 level has now become the immediate strong support for the market,” it said in its technical outlook.
To recap, its recent reports said the market correction, which started from the 1,609 historic peak, might just be a brief one, pending the breakout from the short-term downtrend line and the 1,582-pt level to confirm the shift in trend.
“Our belief is based on the fact that the FBM KLCI had started to rebound for three weeks in a row from around the 23.6% Fibonacci retracement line of the Sept 2011April 2012 rally.
“And, we had the confirmation two days ago. The 12 points gains not only violated the 1,582 point-level which had capped the market's upside for about two weeks, but also violated the short-term downtrend line,” it said.
OSK Research said the strong gains have also written off the “Shooting Star” which is another bullish confirmation.
The research house said after rebounding by around 50 points from the May low, the downtrend has already come to an end.
“A new uptrend has also been identified and the FBM KLCI's near-term outlook will remain firmly bullish as long as it maintains its posture at above this uptrend line,” it said.