As indicated by A, the FBM KLCI rose strongly on Wednesday, and breaking above the 14, 21, 31 EMA dynamic resistance. The KLCI gained 27.38 points or 1.9%, to close at 1472.10 points. Resistance for the KLCI is at 1500.

As indicated by B, total market volume increased only 17.62%, despite the strong gain of the KLCI. Total market volume is now touching the 40-day volume moving average, and if volume should continue to grow, and stay above the 40-day volume moving average, it is likely to lift the market sentiment.

As indicated by C, the Stochastic breaks above 30%, 50%, and now testing 70%. If the Stochastic should stay above 70%, the short term movement of the KLCI is expected to be positive.

In conclusion, even though the KLCI is breaking above the 14, 21, 31 EMA, the KLCI has not resumed its uptrend. Actually, the KLCI could still be consolidating, or trading in a trading range.

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