As indicated by A, the FBM KLCI is testing the 1566 resistance again on Friday, gaining 1.47 points or 0.09% to close at 1564.66 point. With the KLCI above the 14, 21, 31 EMA as well as the L1 line, the technical outlook for now remains positive. Next resistance for the KLCI is seen at 1576.95 historical new high.

As indicated by B, total market volume gained 22.94%, with volume breaking above the 40-day Volume Moving Average. This shows that the market participation is improving, as the inflow of fresh capital increases. Generally, if volume should increased together with the price gain, it implies that the investor confidence is slightly improving.

As indicated by C, the Stochastic stays above 70%, in the short term bullish territory. This suggests that the short term movement of the KLCI is still positive.

In short, the technical outlook for the KLCI remains positive. With volume improving, the KLCI is set to test the next resistance of 1576.95 points. Technically, provided that the KLCI could be supported by the 14, 21, 31 EMA dynamic support, the positive biased outlook shall remains intact. Of course, whether the KLCI could extend its uptrend or not, the performance of the European and the US markets also has a significant impact to the KLCI performance.

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