The KLCI touched an all time new high with its intra-day high at 1334.44 points. However, as shown on the chart above, the KLCI closed at the border line of the 1332 resistance, thus the break-out is not yet confirmed. Mean while, as indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI while the KLCI cautiously testing the important 1332 psychological resistance level.

Total market volume inched up slightly on Tuesday, gaining 6.5%. However, as indicated by B, total market volume remained below 40 days VMA, suggesting that the overall market is still very cautious, as investors are still sidelined before the KLCI could successfully take out the major resistance. (Study B)

Stochastic, as circled at C, is still situated above 90% level, which is the short-term over-bought region. Based on the Stochastic reading, the KLCI is indeed over-heated for the short-term, and therefore, the risk of a technical correction is still high. However, provided that the Stochastic can stay above 70% level, the market movement for the short-term remained bullish biased. (Study C)

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