On Wednesday, the KLCI closed at its daily high ata 1297.93 points, up 14.18 points. As shown on the chart above, the KLCI breaks above the 1285 resistance level, and the 14, 21, 31 EMA dynamic resistance by margin. If the KLCI should continue rising, the 14, 21, 31 EMA shall become its dynamic support and the immediate outlook is likely to improve.

Despite the KLCI ended higher, volume remains below the 40-day VMA level. Therefore, this suggests that the market participation is still low, thus the market sentiment shall remains weak. Nevertheless, the lower volume shall remains an important ingredient if the KLCI should resume its upward movement.

As circled at C, the MACD histogram has not form a rounding top yet. If the MACD histogram should form and rounding top, it would be a short term weakening of the MACD bullish signal. Nevertheless, the MACD line is still staying below the zero level, and therefore the long term market movement shall has not turn positive yet.

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