On Thursday, the KLCI gained 15.80 points or 1.04%, to close at 1537.09 points. As indicated by A, the KLCI is now testing the 1530 – 1540 resistance, which was the gap on the 5^th of August, 2011. If the KLCI could break above this resistance, then the next resistance would be at 1597 – 1600.

As indicated by B, total market volume increased 44.76%, with volume above the 40-day volume moving average. If volume should continue to stay above the 40-day volume moving average, it suggests that the market sentiment is improving.

As indicated by C, the Stochastic breaks above 70%, re-entering the short term bullish territory. Technically, with the Stochastic staying above 70%, the market movement for the short term is expected to be positive.

In conclusion, the KLCI is testing its resistance, and if it should break above this level, more upside room is available for the KLCI. Nevertheless, provided that the KLCI is still supported by the 14, 21 31 EMA dynamic support, the technical outlook for the KLCI shall remain positive.