The immediate support for the KLCI is at 1532 while the next assumed resistance is at 1556.62 points. This is calculated as the 261.8% Fibonacci Line, using the consolidation range of the KLCI with 1224.37 to 1348 in September, 2010.

Meanwhile, the KLCI also break above the 20-day Bollinger Upper band, and this suggests that the KLCI short term movement is indeed strong, but however, overheated. Therefore, a pullback is likely in the near future. Nevertheless, the uptrend for the KLCI remains intact.

As indicated by B, total market volume increased 25.09%, with volume firmly above the 40-day Volume Moving Average. This suggests that the market is actively participated, as investors are taking positions. Generally, if volume should stay above the 40-day Volume Moving Average, the market sentiment as a whole is expected to stay positive.

As indicated by C, the Stochastic is touching 100% now, which suggests that the short term movement of the KLCI is very strong. As long as the Stochastic is staying above 70%, the short term movement of the KLCI is likely to positive.

In conclusion, after breaking above the Triangle consolidation, the KLCI resumes its uptrend and marked historical new highs, and at the same time, market participation increases. Despite a sign of an overheated condition, the uptrend of the KLCI is still intact, as long as the KLCI is still supported by the 14, 21, 31 EMA.

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