As indicated by A, the FBM KLCI rose 9.49 points or 0.6% on Wednesday, making another new high. Meanwhile, as shown on the chart, the 14, 21, 31 EMA and the L1 uptrend line are still serving as the dynamic support to the KLCI.

As indicated by B, total market volume increased significantly of 52.8%, with volume breaking above the 40-day Volume Moving Average. This shows that the market participation has increased, and if volume should remain above the 40-day Volume Moving Average, the market sentiment as a whole is likely to improve, which will benefit the performance of the overall market, as well as the KLCI.

As indicated by C, the Stochastic rebounded on Wednesday, without breaking below 70%. Therefore, the Stochastic is now still staying at the short term bullish territory, suggesting that the short term movement of the KLCI is still bullish biased.

In conclusion, the technical outlook for the KLCI remains positive as the KLCI is still firmly above the L1 line as well as the 14, 21, 31 EMA. If volume should stay above the 40-day Volume Moving Average, the uptrend of the KLCI is likely to stay intact.

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