As indicated by A, the FBM KLCI returned to above the 14, 21, 31 EMA, gaining 11.56 points or 0.79% to close at 1477.78 on Monday. The KLCI also formed higher-lows, thus forming the L1 uptrend line and the immediate technical outlook for the KLCI is positive. Resistance for the KLCI is still at 1500 point as well as the 200-day Moving Average.

As indicated by B, despite the KLCI gaining over 10 points, total market volume fell 10.54%, with volume below the 40-day volume moving average, while losers out-numbered winners. This suggests that the KLCI was only lifted by some heavy weighted blue chips, and the improvement is not broad base.

As indicated by C, the Stochastic breaks above 70%, entering the short term bullish territory. If the Stochastic could continue to stay above 70%, the short term movement of the KLCI is expected to be positive.

In conclusion, the KLCI is forming the L1 uptrend line, with its immediate technical outlook turning positive. However, in order to sustain this uptrend, the KLCI must break above its 1500 resistance. If the KLCI could break out above 1500, with strong volume, more upside room for the KLCI is likely.