KLCI has a drastic correction on Tuesday, ended the day 35.79 points lower to 1237.08 points. As shown on the chart above, 1280 remained as the resistance level while the 1225 is the immediate support to the KLCI. Mean while, as pointed by A, the 14, 21, 31 EMA is still the dynamic support to the KLCI, and therefore, the KLCI has not turned into a bear trend yet.

As pointed by B, total market volume increased 25.6%, with nearly 3.7 billion shares traded. As we had mentioned earlier, whenever the market volume hit new high, it implied a higher risk of a technical correction. Therefore, the KLCI is still under a correction stage. (Study B)

As pointed by C, Stochastic %K fell below 70% level, ended the short-term bullish signal. If the %D line fell below 70% level, it shall confirm the %K signal. Mean while, %K line also broke below 30% level marginally. If the %D line fell below 30% level, it shall be a short-term bearish signal.

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