KLCI rebounded on Wednesday, ended the day 7.37 points higher to 1064.60 points. While the KLCI is still trading at a consolidation stage with the 1071.82 Fibonacci Retracement as the immediate resistance, the rising 14, 21, 31 EMA continued serving as the dynamic support to the KLCI. Therefore, provided that the KLCI is still supported by the rising dynamic support, the outlook for the KLCI remained positive bias. (Study A). Nevertheless, supports for the KLCI are found at 1038, 1022, and 1000 psychological level.

Total market volume on Wednesday declined another 6.4%, while managed to stay above the 40 days. Due to the correction of the KLCI, the lower of volume on Wednesday is viewed as a healthy signal. With the volume maintaining above the 40 days VMA level, it suggested that the market participation is still relatively sufficient. Nevertheless, if the KLCI were to rebound and continue its uptrend, a significant increase of volume is imperative. (Study B)

As circled by C, Stochastic %K rebounded and remained above the 70% level, which is still the short-term bullish region. With both %K and %D lines staying above the 70% level, the market movement for the short-term is still at bullish. The short-term bullishness is expected to continue unless the Stochastic failed to hold up above 70% level. (Study C)

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