As shown on the chart above, the KLCI tested the 1368 resistance, closing 9.32 points higher to 1369.59 points. If the KLCI should break above the 1368 successfully, the 14, 21, 31 EMA (as indicated by A) shall continue serving as its dynamic support, and the outlook for the KLCI would be bullish biased.

As indicated by B, total market volume also increased 34% and getting closer to the 40-day VMA level. If the volume should increase and break above the 40-day VMA level, the market sentiment is likely to improve. Nevertheless, the increase of volume above the 40-day VMA level is needed to sustain the KLCI rally.

As circled at C, the Stochastic %D line breaks above the 70% level, confirming the %K signal. At the moment, the Stochastic is showing a short term bullish signal. Therefore, provided that the Stochastic is staying above the 70% level, the market movement for the short term is likely to be bullish biased.

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