The FBM KLCI ended the last day of 2010 with a slightly more than 5-pt loss. Nevertheless, the benchmark index still ended the session at above the 1,510 pt-level. We mentioned last Thursday that as the index was already more than 14 pts above the 1,510 pt-level, this level can be considered as having been violated. However, we also said that a break above last Wednesday’s intra-day high of 1,526 pts would make us more comfortable with the violation of the 1,510 pt-level. This is because market action such as the evaporating of more than 50% of last Tuesday’s gains on that day is normally viewed as a sign of weakness.
Regardless of the market action in the vicinity of 1,510 pts, our view towards the near-term market has been straight-forward. We will maintain our firmly bullish bias view towards the near-term market until uptrend line 1 is decisively violated.
The FBM KLCI’s historic high of 1,532 pts is still the only resistance which we can detect. To the downside, the 1,510 pt-level is still the immediate support while another support is seen at the 1,485- 1,492-pt area.
Regardless of the market action in the vicinity of 1,510 pts, our view towards the near-term market has been straight-forward. We will maintain our firmly bullish bias view towards the near-term market until uptrend line 1 is decisively violated.
The FBM KLCI’s historic high of 1,532 pts is still the only resistance which we can detect. To the downside, the 1,510 pt-level is still the immediate support while another support is seen at the 1,485- 1,492-pt area.
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