KUALA LUMPUR: OSK Research said the FBM KLCI continued to add more points on Monday after gaining support at the “Upside Gap 2”.

It said on Tuesday, March 30 the push on Monday also repositioned the market back above the “Upside Gap 1” previously violated.

“Meanwhile, it looks like the key index will continue to extend its uptrend,” it said in its technical outlook.

OSK Research said it had been bullish since the market wrote off two major bearish reversal possibilities not too long ago.

The daily RSI, which closed at the 64.3 point-level on Monday, suggested the market has fully corrected its previous overbought situation when the FBM KLCI reached the recent peak of 1,334.

“As the market has bounced back above the Upside Gap 1, continue to look for the previous peak of 1,334 as the immediate resistance. The next resistance is seen at the 1,344-1,358 level.

“To the downside, there is initial support at the 1,295-level, followed by the Upside gap 2 ranging from 1,284 to 1,295,” it said.