KUALA LUMPUR: OSK Research said the FBM KLCI extended its consolidation on Monday, Oct 4 and it is already the fifth consolidation day for the index.

"Thus far, we still cannot tell the immediate technical outlook of the market since creating the "Morning Star" immediately after the steep uptrend line was violated," it said on Tuesday.

OSK Research said the index needs to crack above the recent high of 1,479.6 to confirm the "Morning Star" bullish reversal signal. If not, a dip below the recent low of 1,445.33 would increase the odds of the index falling further after it violated the steeper uptrend two weeks ago.

It said the market had to breach either one of these two levels in order to determine its immediate direction.

The research house said the market has been stable over the last five sessions. However, it cautioned that this was still market trading at below the steeper uptrend line. This means that the market is still at risk of falling further after violating the steep uptrend line.

"Anyhow, we will continue sticking to our bullish bias on the near-term stock market as long as it maintains a posture at above the new uptrend line," it said.

OSK Research said the market's immediate resistance is still seen at the recent high of 1,479.6 while the next resistance lies at the psychological 1,500-barrier, followed by the 1,524.69 level. To the downside, the 1,439 level is now the initial support, followed by the 1,428 level," it said.