The KLCI marked another multi-year new high at 1322.91 on Monday. As indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI and provided that the KLCI can remain supported by this rising dynamic support, the outlook for the KLCI is likely to be bullish biased. However, the next resistance for the KLCI is at 1332, which is the all time high psychological resistance level.

Despite marking another new high, total market volume remains below the 40 days VMA level, with only 2 billion shares traded. Therefore, this shows a sign of lack of confidence in the market participation, and therefore, the sustainability of the KLCI uptrend remains questionable. (Study B)

As circled at C, Stochastic %K rebounded and touched the 100% level again. No doubt, the Stochastic is at an over-bought region now, suggesting that the KLCI is over-heated. Therefore, there is a risk of technical correction for the KLCI. Nevertheless, provided that the Stochastic can stay above 70% level, market movement for the short-term is still bullish biased. (Study C)

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