KUALA LUMPUR: CIMB Equities Research says the important resistance trend line for the FBM KLCI (currently at 1,347) was tested but the bulls failed push through it last week.
It said on Monday, April 12 that with the RSI also testing its own resistance trend line, it thinks that the upside from here is likely capped.
"Prices are also now below its short term support trend line. Prices should be looking to consolidate either this week or next," it said.
CIMB Research said the uppside resistance is at 1,360, where wave-C is equal to 0.618 times of wave-A. The March 2008 gap of 1,344-1,354 also is only partially "filled", hence could still edge higher to close it after this short consolidation. On the downside, support is at 1,320 and the 1,305-1,307 gap.