KUALA LUMPUR: OSK Research said the FBM KLCI briefly crossed the 1,500-mark on Wednesday, Oct 27 but its upside was capped at the previous peak of 1,503.8.

The index ended the day below the major 1,500 psychological level. Without surpassing the 1,500 to 1,503.8 point area, it said it would not know for sure if the "Bullish Harami" is confirmed.

OSK Research said in its technical outlook on Thursday that although the index was still trading below the steep uptrend line, market action has stabilised with no signs of a further drop.

"As the market did not exhibit panic selling after violating the steep uptrend line, we still think the FBM KLCI has a fairly good chance of returning to above the steep uptrend line and confirming the "Bullish Harami".

"Anyhow, the accuracy of the breakdown signal from the short-term trend line is usually not very high and we have never really been concerned about it. This is because we will continue to keep 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 next resistance still lies at the psychological 1,500 mark, followed by the 1,524.69 level. To the downside, the 1,479 level is the immediate support, followed by the 1,439 level.