As indicated by A, the FBM KLCI had its intra-day high reaching 1566.29 points, but started to give up some of its gain after being resisted precisely by the 1566 resistance, closing 15.45 points or 1% higher. Resistance for the KLCI is still at 1566 followed by the all-time high of 1576.95; while the support is at L1 and 14, 21, 31 EMA dynamic support followed by 1537.77 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume increased 90.3%, with volume breaking above the 40-day Volume Moving Average. This shows an increased of inflow of fresh capital, which was sufficient to off set the selling pressure. Generally, if volume should stay above the 40-day Volume Moving Average, it will lift the market sentiment.

As circled at C, the Stochastic rebounded from 70%, and now still in the short term bullish territory. Technically, provided that the Stochastic is still above 70%, the market movement for the short term is expected to positive.

In conclusion, after forming a Higher-low last Thursday, the KLCI formed the L1 ascending line, and the technical outlook for the KLCI is now positive. However, the KLCI is still not yet forming an uptrend, until the KLCI could successfully take out its resistance at 1566. For now, so long as the KLCI is above the L1 or the 14, 21, 31 EMA, the positive technical outlook shall remain intact.

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