The KLCI continued its upward momentum on Friday, closing 13.93 points higher to 1235.65 points. As shown on the chart above, the 1216 – 1220 level is now the immediate support for the KLCI. If the KLCI could stay above this level, the KLCI might resume its uptrend, and the 14, 21, 31 EMA shall resume its role as the dynamic support. However, the condition for the KLCI to resume its uptrend would be the continuity of volume above the 40 days VMA.

As pointed by B, although the KLCI ended higher on Friday, total market volume failed to touch the 40 days VMA level. Therefore, it pays to watch out the 1216-1220 Gap level cautiously. In general, total market volume must stay above the 40 days VMA level to sustain the bullish sentiment. Any rally without this condition is likely to be weak. (Study B)

As circled by C, WinChart RSI rose higher again on Friday while still has not broken above the 70% level. At the moment, the WinChart RSI is still showing a neutral signal with slight bullish bias. (Study C)

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