As indicated by A, the KLCI broke above the 1400 psychological resistance on Tuesday, gaining 14.61 points or 1.05%, to close at 1411.65 points. However, the KLCI is still testing the 14, 21 ,31 EMA dynamic resistance. Temporary support for the KLCI is at 1400 while the next support is at 1310.

As indicated by B, total market volume increased 81.25%, with volume breaking above the 40-day volume moving average. Technically, if volume should continue to increase and stay above the 40-day volume moving average, the market sentiment is likely to improve.

As indicated by C, the Stochastic remains above 70%, in the short term bullish territory. Therefore, this suggests that the short term movement of the KLCI is still positive, until the Stochastic should break below 70%.

In conclusion, despite the break out above 1400, the downtrend for the KLCI remains intact. Technically, the KLCI would have to break above the 14, 21, 31 EMA, then form higher-lows, in order to show the possible reversal signal. On the contrary, if the KLCI should remains resisted by the 14, 21, 31 EMA, and starts falling again, it would be forming lower-highs.

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