FBM KLCI: Needs to Close Above 1,490 (OSK)

The brief selloff last week did no harm to the index rebound that started in 26 Sep. However, the index needs to close above the 1,490-pt resistance level to keep the rebound intact. Resistance is expected at the 16 Aug-high of 1,510 pts, also where the 200-day MAV line is situated, and followed by 1,530 pts, the gap of 5 Aug. Again, a close below 1,475 pts, which is also just below Monday’s “Doji” could see a return in selling. But weakness can only be confirmed by a close below the latest low of 1,450 pts. The next support is 1,430 pts, which is not too far from the 50-day MAV line. A violation of 1,430 pts will likely see the index testing the 1,400-pt psychological level that will retrace 50% of the October rally