The KLCI was trading at narrow range again on Wednesday, closing 0.3 of a point higher at 1522.29 points. As indicated by A, the KLCI remains supported by the 14, 21, 31 EMA dynamic support together with the L1 uptrend line. This suggests that the KLCI uptrend is still intact. Resistance for the KLCI is at 1530.

As indicated by B, total market volume increased 2.82%, with volume above the 40-day volume moving average. This suggests that the market is now relatively well-participated, but however, most of the actively traded counters are still penny stocks and call warrants, and therefore, this might not be able to truly reflect the improvement of market confidence as well as the improvement of capital inflow.

As circled at C, the Stochastic stays above 70%, in the short term bullish territory. This suggests that the short term movement of the KLCI is still positive. If the Stochastic should break below 70%, it would mark an end to this short term bullish movement, and also signal a beginning of a technical correction.

In conclusion, the technical outlook for the KLCI remains positive, as long as it could stay above the rising 14, 21, 31 EMA dynamic support.