KUALA LUMPUR: OSK Research says the bears are here and they could be here for a long time. The FBM KLCI continued to tumble on Monday, after violating the 100-day MAV line last Friday.

It said on Tuesday, Feb 9 a violation of this MAV line confirmed the breakdown at the 50-day MAV line. Yesterday’s market action was yet another confirmation signal for the violation of the 100-day MAV line.

OSK Research said a decisive violation of the 100-day MAV line would pave the way for the onslaught of the bears. The market’s near-term technical outlook is firmly bearish while the longer term technical outlook looks like it is also slowly shifting towards the bearish side.

"We would not be surprised if the FBM KLCI eventually retraced to the 200-day MAV line, which is now situated at the 1,175-level. The 200-day MAV line is now our first downside target. From the current level, an immediate support lies at the 1,233 pt-level, followed by the 1,200 level.

"To the upside, there is immediate resistance at the 100-day MAV line, which is now seen at the 1,258 level, followed by the 50-day MAV line, which now lies at the 1,275 level," it said.