The market greeted 2011 with a new historic high by advancing nearly 15 pts, which basically confirmed the violation of the 1,510 pt-level. This means that the FBM KLCI is no longer stuck in the recent trading band ranging from the 1,474 pt-level to the 1,510 pt-level.
From here, the index could continue to create new historic highs in the near future. Our stand can be supported by the recent technical developments we mentioned last week. Firstly, the FBM KLCI has violated the short-term downtrend channel. Secondly, the index is starting to rebound from uptrend line 1. Last but not least, as stated above, the breakout from the 1,510 pt-level wrote off the possibility that the market will remain stuck in the recent sideways trading range.
Needless to say, the near-term technical outlook of the FBM KLCI is firmly bullish now as it is now trading at its historic high and continues to trend above uptrend line 1.
From the current level, the 1,550 psychological mark is the next resistance. The previous historic high of 1,532 pts has now become an immediate support while next support is seen at 1,510 pts.
From here, the index could continue to create new historic highs in the near future. Our stand can be supported by the recent technical developments we mentioned last week. Firstly, the FBM KLCI has violated the short-term downtrend channel. Secondly, the index is starting to rebound from uptrend line 1. Last but not least, as stated above, the breakout from the 1,510 pt-level wrote off the possibility that the market will remain stuck in the recent sideways trading range.
Needless to say, the near-term technical outlook of the FBM KLCI is firmly bullish now as it is now trading at its historic high and continues to trend above uptrend line 1.
From the current level, the 1,550 psychological mark is the next resistance. The previous historic high of 1,532 pts has now become an immediate support while next support is seen at 1,510 pts.
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