As indicated by A, the KLCI rebounded on the 14, 21, 31 EMA dynamic support, gaining 7.68 points or 0.5% on Wednesday. The KLCI is set to test the 1566 resistance again, and if the KLCI could break above this resistance, the next resistance will be at the historical high of 1576.95.

As indicated by B, total market volume increased 20.4%, with volume getting closer to the 40-day Volume Moving Average. If volume should continue to increase while breaking above the 40-day Volume Moving Average, the market sentiment is likely to improve.

As indicated by C, the Stochastic break above 30%, leaving the short term bearish territory. If the Stochastic could later break above 70%, it would be a short term bullish biased signal for the KLCI.

In conclusion, the technical outlook for the KLCI remains unchanged at positive, and with volume increasing, the KLCI is likely to re-test its resistance at 1566. If the KLCI could take out this resistance, and the next one at 1576.95, the KLCI could extend the uptrend which started in 2009.

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