On Friday, the KLCI ended higher, gaining 4.15 points to 914.69 points. As shown on the chart above, the KLCI tested the 916.59 Fibonacci Retracement while closed precisely at the 31EMA. Therefore, 31EMA is now the immediate dynamic resistance to the KLCI together with the 916.59 Fibonacci Retracement while the support is at the 903.86 Fibonacci Retracement as well as the 14 and 21 EMA. (Study A) In short, the KLCI is trading is a tight congestion region.

As indicated by B, total market volume generally improved, now getting closer to the 40 days VMA (Volume Moving Average) level. This has suggested an improved market participation which also implies more in-flow of fresh capital to the market. (Study B)

%D of the Stochastic remained higher above the 90% level, which is the short-term over-bought region. As displayed on the chart above, and based on the historical data of the KLCI, this would likely trigger a technical correction. Nonetheless, provided that the Stochastic is still above the 70% bullish region, market sentiment for the short-term is still on the positive side. (Study C)

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