The KLCI continued its correction on Thursday, while mostly lower, the KLCI ended the day 0.97 points higher with last minute gain. As shown on the chart above, the 1285 level is still the immediate support for the KLCI while the rising 14, 21, 31 EMA continued serving as the dynamic support. Nevertheless, the 1332 level is still an important psychological resistance level.

With the KLCI at its consolidation stage, total market volume is expected to be slightly lower. As pointed by B, total market volume was 7.5% lower while staying below the 40 days VMA level. It is considered normal to see volume decreased during any consolidation, but if the KLCI was to resume its uptrend, volume above the 40 days VMA level is a must. (Study B)

On Thursday, the Stochastic was a the border line of 90% level, suggested a short-term technical correction signal. However, provided that the Stochastic could remained its position above 70% level, the market movement for the short-term is likely to stay bullish bias. (Study C)

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