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Friday, April 22, 2011

FBM KLCI : Still Consolidating (OSK)

Although the index gapped down at the opening and lost 6.39 pts on Tuesday, it also gapped up on Wednesday’s opening and held up the recent low of 1,517 pts. From the market action, we can see the index’s intention to stay above the 1,517 pt-level. As is portrayed in the above daily chart, we are already seeing early signs that the market is starting to consolidate within a zone ranging from the recent low of 1,517 pts to the immediate resistance at 1,544 pts.

It is likely that a breakout or breakdown from the above-mentioned trading zone will give us a hint on the market’s immediate technical outlook. Meanwhile, we will maintain our bullish view on the near-term market until the 1,474 pt-level is violated.

Immediate support is still seen at last Wednesday’s low of 1,517 pts, while the 1,500-pt psychological mark would be the next support. To the upside, there is immediate resistance at the 1,544 pt-level, followed by 1,565 pts, and the historic high of 1,577 pts.

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