KUALA LUMPUR (Dec 15): The FBM KLCI is set to open lower today as buying sentiment at the local market remains weak still.

However, there could be some pockets of buying opportunities after the heavy broader market selldown yesterday.

Global equity markets swung between gains and losses on Monday as volatile oil prices rebounded from multi-year lows while weakness in credit markets weighed on sentiment ahead of an expected US interest rate hike later this week, according to Reuters.

Brent crude settled down 0.03% at US$37.92 after falling as low as US$36.33 a barrel, its weakest since December 2008. A fall below US$36.20 would take oil down to levels not seen since 2004. US crude settled up 1.9% at US$36.31 after earlier falling as low as US$34.53, it said.

Meanwhile, it said US stocks closed higher on Monday, bouncing back from last week's slump with help from a reversal in oil prices, while investors waited for the Federal Reserve's expected interest hike later in the week.

AllianceDBS Research in its evening edition Tuesday said that dampened by last Friday's weak down close, the FBM KLCI had on Dec 14 gapped down to break below the 1,629 support.

It said the benchmark index subsequently fell to an intraday low of 1,625.12 as market participants continued to play on the selling side in anticipation of a lower market.

The research house said that under the persistent selling pressure, the benchmark index was in the red throughout the trading sessions before settling off the day's low at 1,629.96 (-10.18 , -0.62%).

"In the broader market, losers outnumbered gainers with 782 stocks ending lower and 177 stocks finishing higher. That gave a market breadth of 0.22 indicating the bears were in control," it said.

AllianceDBS Research said the benchmark index continued to make lower low on Dec 14 with sellers still in a dominant position.

"This can further be evidenced from the downside gap. A downside gap indicated the urgency to unload stock positions.

"After the weak opening level, there was a buying attempt to fill the downside gap left behind.

"However, as soon as the last buying order was filled at 1,635.28, there were many willing sellers waiting eagerly to liquidate their stock positions," it said.

The research house said with more willing sellers looking to get their selling orders done, the benchmark index subsequently broke the 1,629 support to reach an intraday low of 1,625.12.

"Given the settlement at 1,629.96, the market should find support at 1,629 again.

"A fall below 1,629 would put pressure on the benchmark index down to 1,620," it said.

The research house said the resistance zone was pegged between 1,640 and 1,645, adding that, indicator wise, the MACD was below the nine-day moving average line.

"The analysis of overall market action on Dec 14 revealed that buying power was weaker than selling pressure.

"As such, the FBM KLCI would likely trade below the 1,625.12 level on Dec 15," said AllianceDBS Research.