After breaking above 1540, the KLCI continue its rally on Thursday, gaining another 12.14 points or 0.78%, to close at 1565.32 points. As indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI and the KLCI next resistance is at 1600, which is the all time high of the KLCI.

As indicated by B, total market volume fell 24.47%, but still above the 40-day volume moving average. This suggests that the market overall is still actively participated, and generally, with volume above the 40-day volume moving average, it is likely to sustain the improving market sentiment.

As indicated by C, the Stochastic is now touching 100%, which suggests that the short term movement of the KLCI is indeed bullish, but also started to be over-bought. Nevertheless, as long as the Stochastic is still above 70%, the short term movement of the KLCI is still positive.

In conclusion, the uptrend of the KLCI is still intact, but short term movement is now beginning to be over-heated. It is normal for the KLCI to have some minor correction or consolidation after a few days of rally, and provided that the KLCI is still above the rising 14, 21, 31 EMA after the possible correction, the technical outlook is still on the positive side.