After successfully rebounding from the 14, 21, 31 EMA dynamic support, the KLCI extended its rally on Thursday, gaining another 4.75 points to close at 1665.42 points, making a historical closing price new high. As indicated by A, the KLCI is now approaching the 1668 resistance.

As indicated by B, total market volume fell 0.35%, but volume remains above the 40-day Volume Moving Average. Generally, this suggests that the market participation is active. However, the market turnover value fell 23.9%, with RM 1.533 billion traded. This suggests that majority of the trading volume comes from lower-priced stocks, while blue chips only account for a smaller portion.

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

In conclusion, the KLCI is set to test its 1668 resistance. Technically, the immediate technical outlook remains positive for now, and if the KLCI could successfully break out above the 1668 resistance, it would allow more upside room for the KLCI.