As indicated by A, the KLCI rose 9.19 points to close at 1563.43 points, and it is set to test the 1566 resistance. The 14, 21, 31 EMA and the L1 line are still serving as the dynamic support to the KLCI, while the next resistance for the KLCI is at 1576.95 historical new high level.

As indicated by B, total market volume increased 16.1%, and breaking above the 40-day Volume Moving Average by margin. Theoretically, this suggests that the market participation is improving, and had reached a healthy level, which is likely to help lifting the market sentiment in general. Of course, the volume would have to continue to increase and stay above the 40-day Volume Moving Average in order to sustain the improvement of the market sentiment.

As indicated by C, the Stochastic is returning to above 70%, re-entering the short term bullish territory. If the Stochastic could sustain above 70%, the market movement for the short term is likely to be positive.

In short, the positive technical outlook for the KLCI remains intact, as the KLCI remains supported by the 14, 21, 31 EMA as well as the L1 line. If the KLCI could break above the 1566 resistance, it is likely that the KLCI could extend its bullish biased movement, but of course, the next important resistance is yet to be taken out, at 1576.95.

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