The KLCI rebounded 9.01 points on Friday after being supported by the 14, 21, 31 EMA dynamic support. As shown on the chart above, the 1332 remains as the immediate resistance while the 1285 is still the support level. As indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI. (Study A) At the moment, the KLCI is likely to stay in consolidation mood.

Total market volume on Friday declined 9.7% with only 1.62 billion shares traded. As indicated by B, total market volume remained below the 40-day VMA level. This suggests that the overall market participation is still relatively insufficient; however, it is considered normal to have a lower volume during a consolidation. Nevertheless, if the KLCI was to re-test the 1332 psychological level again, an increase of volume above the 40-day VMA level is absolutely imperative. (Study B)

As indicated by C, the Stochastic %K line rebounded in respond to the KLCI. If the %K line could return to above the 70% level, with the %D line still situating above the 70% level, the market movement for the short-term would return to bullish biased. If the %K stayed within the 50% level and the %D later fell below the70% level, the short-term market movement would be at neutral.(Study C)

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