After staying indecisively at the resistance level border line, the KLCI ended higher on Friday, gaining 13.92 points to 1060.43 points. As shown on the chart above, the 1038 – 1040 level is now the immediate support to the KLCI while the next resistance is seen at the 1080 level. Mean while, as pointed by A, the rising 14, 21, 31 EMA continue serving as the dynamic support to the KLCI and therefore, the outlook for the KLCI is still bullish bias. (Study A)

Total market volume on Friday increased 28.7% with over 1.3 billion shares traded. With the volume staying consecutively above the 40 days VMA level, it suggested that the market was well participated. Provided that the volume could maintain above the 40 days VMA level, the bullish market sentiment is likely to sustain. (Study B)

As shown by C arrow, the MACD histogram ticked higher on Friday and ended the rounding top signal. This suggested that the MACD bullish signal is regaining its strength, and if the MACD histogram could continue rising, it shall form a rounding bottom signal thus the market movement for the short-term would resume to bullish. (Study C)

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