The benchmark FBM KLCI continues to scale new highs after breaking the January 2010 high of 1308. The uptrend for the KLCI is still intact as it continues to display a series of higher highs and higher lows and trades above its 20 and 50-day moving averages. In addition, the MACD trend indicator remains above its centerline which supports the on-going bullish trend. However, the Stochastic oscillator has started to inch downwards below the 50% level which suggests that short-term downside momentum is building up. Thus, the KLCI may see the risk of a short-term retracement before resuming its climb northwards. A violation below its immediate support at 1329 may see a slide towards the next support at 1313. On the upside, be on the lookout for its next resistance at 1380.