After breaking above the 1567 resistance, the KLCI continues its rally, gaining another 10.33 points or 0.66% on Friday, to close at 1583.78 points. As indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support for the KLCI uptrend. Next resistance for the KLCI is at 1600.

As indicated by B, total market volume increased 0.78%, with volume still below the 40-day Volume Moving Average. This suggests that the market is relatively quiet as inflow of fresh capital is low.

As indicated by C, the Stochastic stays above 70%, in the short-term bullish territory, and the short-term movement of the KLCI is expected to be positive.

In conclusion, despite the “insufficient” of volume, the uptrend of the KLCI remains intact. As the KLCI is approaching the 1600 resistance, increased of profit taking activities is likely, and the KLCI could have another consolidation. However, as long as the KLCI could stay above the 14, 21, 31 EMA, the technical outlook for the KLCI shall remains positive.