KUALA LUMPUR (Feb 22): Inter-Pacific Securities Sdn Bhd said the FBM KLCI’s technical indicators remain overbought, and this could extend the downside pressure on these constituents.

In its daily bulletin on Thursday, the research house said the KLCI ended its upward streak on Wednesday as profit-taking activities set in to send the key index lower.

However, it said with the sustained buying interest from foreign funds, the key index should be able to hold on to much of its recent gains as the selling pressure also appears benign for now.

“Under the present environment, the key index may stay range-bound as it attempts to build up a base around the 1,550 level that could provide a springboard for it to head higher over the medium term, riding on the prognosis that there could be meaningful recovery in the country’s economic outlook in the months ahead.

“Below the 1,550 level, the other support is at 1,546 points, while the resistances remain at 1,563 and 1,570 points respectively,” it said.

Inter-Pacific said after an extended overbought streak, the lower liners could be consolidating their gains that would also provide some breather for these stocks from recent upsides.

“The pullback could also be mild due to the low selling pressure,” it said.