As indicated by A, the KLCI was lifted by the over-night gains of the American and European markets, gaining 12.66 points or 0.8%. The KLCI broke above the L1 line marginally, and the next resistance is at 1537 WinChart Automatic Fibonacci Retracement followed by the recent high of 1565; while the support is at 1525.4 WinChart Automatic Fibonacci Retracement followed by 1513.36.

As indicated by B, total market volume increased 23.4%, but still have not reached the 40-day Volume Moving Average. This suggests that the overall participation is still low, as investors have not fully regained their confidence about the local market.

As indicated by C, the Stochastic breaks above 70%, entering the short term bullish territory, and if the Stochastic could stay above 70%, the market movement for the short term is likely to improve further.

In short, breaking above the L1 is a positive signal for the KLCI as it means that the KLCI is not forming a downtrend. However, as for whether the KLCI would reverse and form an uptrend, it is still too early to tell, for the KLCI has not formed a higher-Low.

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