Consolidation of the KLCI continued on Wednesday, gaining 4.67 points to 894.66 points. As pointed by A, resistance for the KLCI remained at 903 Fibonacci Retracement or the 900 psychological resistance level. (Study A) Support is still at 883 points. As shown on the chart above, the 14, 21, 31 EMA were still falling, suggested that the KLCI is still trending down.

Total market volume gained 85.9% on Wednesday, with slightly more than 600 million shares. The growth of market volume was a positive sign to the market, which suggested an increase of buying interest. If the volume could grow higher, chances the KLCI breaking the 900 resistance level would be higher. (Study B)

As circled by C, the MACD histogram rose, suggested the bear was losing strength. Provided that the histogram could continue rising, outlook for the KLCI in the short-term is likely to improve. However, at the moment, MACD has not triggered any bullish signal. (Study C)

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