As indicated by A, the FBM KLCI rose 8.45 points or 0.6% on Friday, breaking above the 1537.44 WinChart Automatic Fibonacci Retracement. Next resistance for the KLCI is found at 1552.34 WinChart Automatic Fibonacci Retracement followed by the recent high of 1566; while the support is at 1525.4 WinChart Automatic Fibonacci Retracement as well as the 14, 21, 31 EMA.

As indicated by B, total market volume gained 28.2%, and volume is getting closer to the 40-day Volume Moving Average. Generally, if volume could break above the 40-day Volume Moving Average, it means that the market participation is 'sufficient' thus likely to lift the market sentiment.

As circled at C, the Stochastic stays above 70%, in the short term bullish territory. This suggests that the KLCI short term is picking up strength, and the improvement is expected to carry on until the Stochastic should break below 70%.

In conclusion, after breaking above the L1 line, the KLCI is showing some sign of improvement, if volume should continue to increase, and break above the 40-day Volume Moving Average, more improvement is likely. Also, if the KLCI should stay above the 40-day Volume Moving Average or form a higher-Low, a short term uptrend is likely to form.

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