The KLCI was traded in a narrow range in early trades, amid the lack of fresh leads, but it managed to close at 1646.11 points, gaining 5.78 points or 0.35%. As indicated by A, the 1655 is still the immediate resistance to the KLCI while the support is at 1625.

Total market volume increased 22.2%, with 1,030,496,000 shares changing hands. However, as indicated by B, total market volume remains below the 40-day Volume Moving Average, as this suggests that the overall market is still relatively quiet. This implies that investors are still being cautious and not feeling very confident about the market.

As indicated by C, the Stochastic %K line stays above 70%, in the short-term bullish territory. Also, the %D is now touching 70%. If both these lines could stay above 70%, it suggests that the short-term movement of the KLCI is gaining strength.

In conclusion, since rebounding from the 1600 psychological level, the KLCI also broke above the 14, 21, 31 EMA, thus the immediate technical outlook is on the positive side. However, the KLCI has not yet resuming its previous uptrend as it is still capped under 1655. Nevertheless, with the KLCI less than 10 points away, it is really not difficult for the KLCI to break above this level. But the main concern is whether or not we shall see strong volume accompanying the bullish breakout. If the breakout was not backed with significant volume, it would be unconvincing.