As indicated by A, the KLCI gained 7.75 points or 0.5%, forming a Higher-low, which is one of the characteristic of an uptrend formation. However, the KLCI is required to take out the 1566 resistance before an uptrend could form, as illustrated by the dotted ascending line.

The KLCI is now above the 14, 21, 31 EMA, which bring the technical outlook back to the positive side. Resistance for the KLCI is at 1552.74 followed by 1566, while the support is at 1525.67 as well as the 14, 21, 31 EMA dynamic support.

As indicated by B, total market volume gained 18.5%. Apparently, the market participation is increasing, however, if one would look a little deeper, he could find out that actually more than 10% of Friday's volume was contributed from KNM, which was falling. Therefore, this increased of volume could not entirely reflect as an improvement or a positive note to the overall market sentiment. Not to mention that volume is still below the 40-day Volume Moving Average.

As indicated by C, the Stochastic breaks above 70%, returning to the short term bullish territory. Therefore, if the Stochastic should continue to stay above 70%, the market movement for the short term is expected to be positive.

In conclusion, with the KLCI forming a higher-low as well as returning to above the 14, 21, 31 EMA, the technical outlook is now positive. However, the KLCI has not formed an uptrend.

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