KUALA LUMPUR: OSK Research is maintaining its bullish view towards the near-term market after the FBM KLCI rallied furiously on Monday, March 8 after the last week’s gains had completely written off two major bearish reversal possibilities.

It said the key index took out last year’s high in great fashion with a massive upside-gap. It added that it had not seen the FBM KLCI carve out such a big upside-gap for months.

“Yesterday’s market action has a lot to say about the high level of optimism in the equity market. It looks like the key index could be rallying on a straight-line for the next one week or so,” it said.

OSK Research said after last week’s return above the 50-day MAV line and the breakout from the 1,288.5-level, there is no more worry that a major bearish trend would be constructed.

The bulls have returned back to their comfort zone.

From the current level, now look for an immediate minor resistance at the 1,357-level followed by a strong resistance of 1,392-level. To the downside, now look for an immediate support at the upside gap ranging from the 1,299-level to the 1,312-level.