On Wednesday, the KLCI rebounded strong at the 14, 21, 31 EMA, led by many blue chip counters. The KLCI had its daily high reaching 1573.75 points, closing at 1569.65 points, gaining 12.92 points or 0.83%. As indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support for the KLCI, and the uptrend remains intact. The KLCI is likely to test its 1600 mark.

As indicated by B, total market volume increased 12.43%, but not yet able to break above the 40-day Volume Moving Average. The gains in blue chips help lifted the market sentiment, and we had 535 gainers over 297 losers. Nevertheless, technically, volume has to break above the 40-day Volume Moving Average in order to confirm any bullish signal.

As indicated by C, the Stochastic breaks above 70%, re-entering the short-term bullish territory. If the Stochastic could stay above 70%, it suggests that the short-term movement of the KLCI is positive.

In conclusion, the KLCI is breaking above 1567 resistance, although only by margin, the KLCI is breaking away from its sideways consolidation, and likely to resume its uptrend. Technical outlook of the KLCI remains positive.