KLCI ended marginally higher on Monday, closing at 965.44 points. As pointed by A, the KLCI remained supported by the ascending 14, 21, 31 EMA and therefore, the 14, 21, 31 EMA is still the dynamic support to the KLCI. However, the important resistance at 970.49 Fibonacci Retracement remained the limit of the KLCI at the moment, unless the KLCI could break above this resistance with strong volume.

As pointed by B, total market volume for the day was another 10.7% lower, which was still below the 40 days VMA level. This suggested that the market participation was still low. Generally, when volume is below the 40 days VMA level, the movement for the KLCI is usually weak. Nonetheless, volume is still the most important factor if the KLCI were to test the 970.49 Fibonacci Retracement resistance again. (Study B)

Despite the unclear market outlook in general, market sentiment for the short-term is still bullish. This is because the Stochastic is still situated above the 70% bullish region, and provided that the Stochastic could maintain its position above the bullish region, market sentiment for the short-term is still bullish bias. (Study C)

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