As indicated by A, the KLCI breaks above the 885 WinChart Automatic Fibonacci Retracement with a opening gap on Thursday, closing 20.89 points higher to 905.07 points. Therefore, the support for the KLCI is at 885 WinChart Automatic Fibonacci Retracement while the immediate resistance is at 905 WinChart Automatic Fibonacci Retracement.

As shown on the chart above, the KLCI formed a higher-low, suggesting a formation of an uptrend as indicated by the T1 line. Therefore, we shall use 14, 21, 31 EMA as the dynamic support for the KLCI.

As indicated by B, total market volume increased 126.7% on Thursday, suggesting an increased of market participation with more buying interests. Provided that the volume could remain above 40-day VMA level, the positive market sentiment is likely to continue, which would help to sustain the KLCI uptrend.

As circled at C, the Stochastic is still above 70% level, which is the short term bullish region. Therefore, provided that the Stochastic is still above 70% level, the market movement for the short term is still bullish biased.

Since the KLCI has formed a higher-low, which is an important characteristic of an uptrend, we shall apply the 14, 21, 31 EMA as the trailing stop reference. In short, as long as the KLCI is still above the rising 14, 21, 31 EMA, the uptrend is expected to continue.

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