As indicated by A, the KLCI remains in the congestion zone of the 14, 21, 31 EMA. In additional, the KLCI trading range of the 1332 support and 1368 resistance remains intact. Therefore, the KLCI is likely to continue its consolidation.

Total market volume was 17.3% lower on Thursday while still staying below the 40-day VMA level. This suggests that the market participation is still low and therefore, the KLCI is expected to stay in sideways in its consolidation.

As of Thursday, the Stochastic is still showing a short term neutral signal in around the 50% level. Therefore, the KLCI short term movement is still at neutral. If the Stochastic should break above the 70% level, it would be a short term bullish signal for the KLCI. If the Stochastic should fall below the 30% level, it would be a short term bearish signal for the KLCI.

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