KLCI opened with an Break-Away Gap up on Friday, ended the day 20.13 points higher to close at 1209.48 points. Shown on the chart above, the 1191 resistance was taken out on Friday and therefore, it shall be the immediate support to the KLCI. Mean while, as pointed by A, the 14, 21, 31 EMA remained rising and continued serving as the dynamic support to the KLCI. As long as the the KLCI could maintain its position above the rising dynamic support, the KLCI is likely to stay in its uptrend.

Total market volume on Friday also gained 23.7%, with over 1.47 billion shares traded. As pointed by B, the market volume also managed to break above the 40 days VMA level, which suggested an increased and relatively sufficient market participation. In addition, the increased of volume also confirm the break-away gap. Provided that the market volume remained strong, the bullish sentiment for the market is expected to sustain. (Study B)

As circled by C, Stochastic remained above 70% in the short-term bullish region. If the Stochastic could stay above 70% level, the market movement for the short-term is likely to stay bullish bias. (Study C)

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