FBM KLCI : Still Capped by 1,565 (OSK)

Judging from last Wednesday’s upward momentum, it appeared that the FBM KLCI was going to violate the formidable 1,565 pt-level for sure, even though it only managed to violate the resistance level marginally. Anyhow, further confirmation on the breakout from the 1,565 pt-level was needed but did not happen. Yesterday, the index had at one point even given back all the gains chalked up last Wednesday. It looks like the market might have made its third failed breakout attempt at the 1,565 pt-level. Meanwhile, things are still developing as expected after the 15.5-pt gain on 31 May 2011. Firstly, the consolidation of these gains was healthy although the index did at one point give up more than 50% of the gains. Subsequently, the FBM KLCI also rebounded from the projected uptrend line. The FBM KLCI’s near-term technical outlook remains firmly bullish. For now, immediate resistance lies at the 1,565 pt-level, followed by the 1,577 pt-level. To the downside, there is immediate support at the 1,554-1,559-pt area