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On Tuesday, the KLCI was
trading at a narrow range, closing 0.75 of a point lower at 1631.60 points. As
indicated by A, the KLCI is still above the 14, 21, 31 EMA dynamic support, thus
the uptrend shall remains intact. Resistance for the KLCI stays at 1647.94
historical peak.
As indicated by B, total
market volume fell 4.39%, but volume remains above the 40-day Volume Moving
Average. This suggests that the market is overall actively participated and if
volume should stay above the 40-day Volume Moving Average, it is likely to help
sustain the KLCI uptrend.
As indicated by C, the
Stochastic remains in its neutral position despite breaking above 30%.
Technically, the Stochastic would have to break above 70%, in order to signal a
short-term bullish movement.
In conclusion, with the KLCI
above the 14, 21, 31 EMA, the immediate technical outlook for the KLCI is still
positive. However, for the KLCI to extend its uptrend, it would have to break
above 1647.94 resistance, or the upside room would be limited.
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