KLCI closed higher on Tuesday, ended the day with the intra-day high at 1030.09 points. As shown on the chart above, the KLCI broke above the 1022 resistance with convincing increase of volume. Mean while, as pointed by A, the rising 14, 21, 31 EMA continue serving as the dynamic support to the KLCI, and therefore, as long as the EMA is still rising with the KLCI situated above it, the outlook for the KLCI is likely to stay bullish. (Study A) In addition, the 1000 points is still the important psychological support level.

Total market volume gained 23.8% on Tuesday. The increase of volume also reinforced the break out of the 1022 resistance, and therefore, the increase of the volume shall serve as the fuel to the uptrend, and provided that volume could remained above the 40 days VMA level, the bullish sentiment is likely to sustain. (Study B)

Both %D and %K of Stochastic are above the 90% level again, which entered the short-term over-bought region. This suggested that the market movement was indeed over-heated, but since the Stochastic is still above the 70% bullish region, the market sentiment for the short-term is still bullish bias. (Study C)

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