On Thursday, the KLCI fell below the 1368 immediate support and therefore the break out on Wednesday was a false break-out. Nevertheless, as indicated by A, the KLCI is still supported by the 14, 21, 31 EMA dynamic support. At the moment, the KLCI remains in the trading range of the 1332 support and the 1368 resistance.

As indicated by B, total market volume on Wednesday declined 20.9%, and remains below the 40-day VMA level. This suggests that the continuity of the capital inflow is still low, and therefore the KLCI failed to break out from the 1368 resistance successfully. Provided that the volume remains below the 40-day VMA level, the KLCI is likely to stay within the trading range.

As circled at C, the Stochastic is still suggesting a short term bullish signal while staying above the 70% level. Therefore, the market movement for the short term is still bullish biased. (Study C)

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