On Tuesday, the FBM KLCI gained 1.21 points to close at 1298.37 points. Despite breaking above the 1297 level by margin, the KLCI is still capped by the 1300 psychological resistance level. Therefore, the 1300 level is still the resistance for now, while the support is at 1284 level.

Although the KLCI recent movement was rather flat, it has slowly regaining its position at the 14, 21, 31 EMA, and testing this important dynamic resistance. If the KLCI could break above the 14, 21, 31 EMA, there is a good chance that the KLCI would regain its strength.

As indicated by B, total market volume increased 1.9%, with volume remains below the 40-day VMA level. Therefore, this shows that the market is indeed quiet, as inflow of fresh capital is still low. Therefore, the buying interest is still low, thus unable to off set the selling pressure.

As indicated by C, the Stochastic stays above 70%, in the short term bullish territory. Therefore, the short term movement of the KLCI is still positive.

In conclusion, the KLCI is testing the important 14, 21, 31 EMA dynamic resistance. If the KLCI should break above this dynamic resistance, together with the Bollinger Bands re-expanding, the KLCI could resume its bullish movement.

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