KLCI tested the 14, 21, 31 EMA on Money, breaking above the EMA by margin, closing 14.46 points higher to 1203.29 points. The break out above the EMA did not confirmed by the volume as the market volume was lower on Monday. Therefore, the KLCI is likely to stay range bound within the 14, 21, 31 EMA congestion zone. Nevertheless, the 1105.40 Fibonacci Retracement is still the support for the KLCI.

Total market volume on Monday declined another 16.9%, with 1.42 billion shares traded. The daily market volume also failed to break above the 40 days VMA (Volume Moving Average) and therefore, this suggested that the market was lightly participated. Generally, the KLCI is unlikely to go strong with volume below the 40 days VMA level. (Study B)

As circled by C, Stochastic has broken above the 30% level, and temporary stayed away from the short-term bearish region. At the moment, Stochastic is situated in the neutral region, and therefore the market movement for the KLCI in short-term is likely to stay neutral. (Study C)

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