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Friday, October 21, 2011

FBM KLCI: Buying confirmation needed (OSK)

Buying support was seen in the FBM KLCI yesterday but a follow-up buying, which can neutralize the early week bearish bias, is still needed to confirm the continuation of the rally that started in late-September. The index rallied strongly after the confirmed break above 1,400-pt resistance level, breaking the series of lower highs since mid-August, just as mentioned in our previous report. It even surpassed the 1,450-pt measured move target. Nonetheless, early signs of selling have surfaced which have to be nullified to keep the upward bias intact. The index has to nullify the bearish sign of Tuesday to keep the upward bias that started in late-September intact. A close back above the covered gap high of 1,452 pts should suffice and a break above Monday’s high of 1,465.5 pts as the confirmation. Nevertheless, a continued close above the 50-day MAV line, now at 1,438 pts should also signal buying support.

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