Despite the over-night US and European markets ended higher, which lead the regional markets higher, the KLCI could only open slightly higher but traded narrowly in the morning session. Fortunately, starting at noon, the KLCI started to pickup its momentum, and ended 7.15 points higher to close at 1660.67 points. As indicated by A, the KLCI was still supported by the 14, 21, 31 EMA dynamic support, while the immediate resistance is at 1668.

As indicated by B, total market volume increased 33.49%, with volume above the 40-day Volume Moving Average. Generally, this suggests that the market participation has increased and up to a healthy level. Technically, if volume could stay above the 40-day Volume Moving Average, it would likely to improve the market sentiment as a whole.

As indicated by C, the Stochastic rebounded from 50%, while still staying in its short-term neutral signal, with some positive biased. If the Stochastic should break above 70%, it would be a signal suggesting that the KLCI is resuming its short-term bullish movement.

With the KLCI above the 14, 21, 31 EMA, the technical outlook for the KLCI remains positive. Also, not only did volume increased, the market turnover also increased 60%, with over RM 2 billion traded, and this shows that the market participation is turning active, and as a result, the KLCI is likely to test its 1668 peak.