KUALA LUMPUR: OSK Research said the FBM KLCI has established a 5-day sideways trading pattern. The consolidation phase for the more than 30 points gained last Monday and Tuesday has been very constructive as the market has thus retained the bulk of those gains.

The research house said on Wednesday, Sept 23 that whether or not the index could stay above the steeper uptrend would determine if the market can still march higher from here without pulling back sharply.

"Meanwhile, the odds remain high that the index could continue to stretch its gains near the daily RSI's 80-point overbought level. The indicator closed at the 80.2 point-level yesterday," it said.

OSK Research said although the RSI has reached its highest level since the bull market started in March 2009, market participants are still exhibiting no signs of rushing out of the market.

"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.

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