KUALA LUMPUR: OSK Research said mainly due to the profit taking activities on banking stocks, the FBM KLCI fell slightly more than 10 points during last Friday, Oct 15's session.

Interest in the CONSTRUCTION [] stocks ahead of the government's Budget announcement failed to lift up sentiment on the other FBM KLCI component stocks.

"To see if the index will be retracing further from the current level, we have a new short-term uptrend line as it is portrayed by the above daily chart. A break below this trend line would signal further weakness. Having said so, bear in mind that the accuracy of the breakdown signal would not be very high for a short-term trend violation," it said on Monday, Oct 18.

OSK Research said the daily RSI is closed at the 80 points level last Friday. Hence, the door is still open for additional gains without the need of pulling back further.

"We will continue to stick to our bullish bias view 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 next resistance still lies at the psychological 1,500-mark, followed by the 1,524.69 point-level. To the downside, the 1,439-point level is now the immediate support followed by the 1,428-point level.