Despite trading mostly on the negative region, KLCI ended the Friday trading with last minute gains, closing 6.95 points higher to 1283.47 points. As shown on the chart above, the KLCI is testing the 1280 resistance level while the 14, 21, 31 EMA shall continue serving as the dynamic support.

Total market volume ended 33.1% lower with almost 420 million shares. The decline of volume suggested a decrease of interest in the market, while it also failed to confirm the break out of the 1280 resistance level. In order to have a valid break out, a more volume is needed, or else the break out is likely to be a faulty one. (Study B)

Despite staying over-bought for some times, Stochastic over-bought signal remained intact. Therefore, this suggested that the market movement for the short-term is still over-heated, thus a risk of a technical correction is still high. (Study C)

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