As the US market is breaking above from the rectangular trading range which lasted for two months, markets around the world continue to climb higher. As for the KLCI, it gains 13.13 points or 0.9%, to close at 1470.93 points. Resistance for the KLCI is now at 1487, which is the 61.8% Fibonacci Retracement Line, while the support is at 1453, as well as the 14, 21, 31 EMA dynamic support.

As indicated by B, total market volume increased 97.47%, with volume strongly above the 40-day volume moving average. This suggests some strong inflow of fresh capital, thus off setting the selling pressure from profit taking activities. The higher of volume also suggesting an increase of investors confidence, thus likely to help sustain the current improvement of the KLCI.

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

In conclusion, after breaking away from the downtrend, the KLCI also formed higher-lows and now breaking above 1453 resistance. Therefore, it has shown a bullish reversal signal, for the short term. However, whether this short term uptrend will develop into a longer uptrend, the performance of the regional market is still the key factor.

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