With the exception of the Shanghai Composite Index, most of the Asian markets ended higher, as driven by the over-night strong gains of the US markets. As indicated by A, the KLCI rose 5.12 points or 0.32%, closing at 1588.10 points. The KLCI is still supported by the 14, 21, 31 EMA dynamic support, while the resistance stays at 1597.08 or 1600.
As indicated by B, total market volume increased 29.83%, but volume is still below the 40-day Volume Moving Average. This suggests that the market in a whole is still lightly participated. Technically, more volume is needed to sustain the bullish movement, especially when the KLCI is testing its historical high.
As indicated by C, the Stochastic stays above 70%, in its short-term bullish territory. This suggests that the KLCI short-term movement is still positive. If the Stochastic should break below 70%, it would be a signal suggesting a beginning of a short-term technical correction.
In conclusion, the uptrend of the KLCI remains intact, with positive technical outlook. However, if the KLCI should sustain this uptrend, it would have to break above its resistance, and equally important, more volume is needed.