The KLCI ended marginally higher on Friday gaining 3.61 points to 1391.57 points. As shown on the chart above, the KLCI is still supported by the 1368 level, and meanwhile, the 14, 21, 31 EMA is still rising and continue serving as the dynamic support to the KLCI. Therefore, the KLCI trend is still bullish biased. (Study A)

Total market volume declined 93.% but remains above the 40-days VMA level. Therefore, the overall market participation is still relatively sufficient. If the volume should increase and remains above the 40-day VMA level, the bullish sentiment for the market is expected to continue. (Study B)

As circled at C, both the Stochastic %K and %D lines are now above the 90% level, which is the short term over-bought region. Therefore, there is a risk for a technical correction for the KLCI. However, provided that the Stochastic is still situated above the 70% level, the market movement for the short term is still bullish biased. (Study C)

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