As indicated by A, the KLCI was not able to break above the 1530 resistance. The 1530 is the gap which took place on the 5^th of August, 2011. The KLCI fell 2.49 points to close at 1523.07 points, while still supported by the 14, 21, 31 EMA dynamic support as well as the L1 uptrend line. Support for the KLCI is at 1500.

As indicated by B, total market volume increased 16.58%, with volume above the 40-day volume moving average again. However, the actively traded counters are still low-priced stocks and structured warrants, thus the increased of volume failed to reflect increased of inflow of capital.

As circled at C, the Stochastic fell slightly on Friday, but not yet breaking below 70%. If the Stochastic should fall below 70%, it would mark an end to the short term bullish signal, and the beginning of a short term technical correction.

In conclusion, despite that the KLCI is still holding up above the 14, 21, 31 EMA dynamic support, it is still capped under 1530 resistance, and the uptrend can not be extended unless this resistance is taken out successfully. Nevertheless, the immediate technical outlook for the KLCI remains positive.