KUALA LUMPUR: OSK Research said the FBM KLCI's near-term technical outlook will remain firmly bullish as long as it stays above the new uptrend line as is marked in the above chart.

It said on Friday, Sept 17 that besides, the index can still go up at the current rapid pace as long as the steeper uptrend line is not violated.

"The market's immediate resistance now lies at the psychological 1,500-barrier, followed by the 1,524.69-level. To the downside, there is immediate support at the 1,457-level, followed by the 1,439-level," the research house said.

OSK Research, in recapping Wednesday's performance, said the bulls would be very glad to see the FBM KLCI losing less than two points on Wednesday considering the index has advanced more than 30 points in the two prior sessions.

Undoubtedly, the market action that day was constructive and there were no signs of panic selling. Note that the FBM KLCI opened the day with the daily RSI at the 86.4-pt overbought level, which is the highest reached by the market since the bull market started in March 2009.

The research house said despite the market's current overbought condition, it can still stretch its gains further at around the overbought territory.

"Remember that we said that most of the 32-point gain in the KLCI recorded on Monday and Tuesday actually happened at above the 80 point RSI level. Moreover, over the last 20 trading days, the 71.7 point RSI level was the lowest closing for the daily RSI. The FBM KLCI has gained more than 100 points at above the 70 point RSI level," it said.