On Tuesday, the KLCI continued its consolidation ended the day at 1317.50 points. As shown on the chart above, the KLCI remains in the range between the 1285 support and the 1332 resistance, and therefore, the direction for the KLCI is still unclear. Meanwhile, as indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support to the KLCI.

Total market volume decreased 22% on Tuesday, and continued staying below the 40-day VMA level. It would appear that investors chose to stay on the sidelines before the KLCI shows in the absence of a clearer trend by the KLCI. The lower volume also suggests a decline in capital inflow, thus the KLCI is likely to stay in consolidation mood. (Study B) 
. (Study B)

Both %K and %D lines of the Stochastic are situated in the neutral region, suggesting that the market movement for the short term is at neutral. If the Stochastic should break above the 70% level, it would be the first signal suggesting a short term bullish signal. Likewise, if the Stochastic should fall below the 30% level, it would be the first short term bearish signal. (Study C)

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