18/01/06 : Technical View – Holding Up Well
This is an article courtesy of OSK Research Sdn. Bhd.
By : OSK Research Sdn. Bhd published in OSK188.com on – 18 Jan, 2006
The market got the much needed bounce to correct Monday’s dangerous decline. The KLCI went up to a high of 911.03 pts level before giving up most of the intra-day gains. The resulting chart action left behind an “Inverted Hammer” candlestick pattern which gives us a hope that the critical immediate support of 906 pts level will not be taken out anytime soon.
The “Inverted Hammer” is a fairly reliable bullish reversal pattern. It is likely that the market may be able to trade sideways at above the 906 pts level or even extend the rally we saw a couple of weeks ago. Traders should be glad to see a rebound here as a break below the 906 pts level is bad for the short-term market. The bull would not want to see the market retracing back to the breakout level of 906 pts level.
For today’s session, continue to look for an immediate resistance at the 910 pts level, followed by the recent high of 917 pts level. The immediate support for the market is seen at the 906 pts level, followed by the 900-902 pts area.