As indicated by a, the FBM KLCI rallied right before the market close on Friday, gaining 4.50 points or 0.3%. Immediate resistance for the KLCI remains at 1600 psychological level, while the supports are found at the 14, 21, 31 EMA dynamic support as well as the L1 uptrend line.

As indicated by B, total market volume fell 36.4%, with volume below the 40-day Volume Moving Average. This might be due to the investors are being cautious as the KLCI is approaching a psychological level.

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

In conclusion, the technical outlook remains positive for the KLCI. Of course, it would be much better if volume could stay above the 40-day Volume Moving Average. For any rally with thin volume is usually weak.

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