As indicated by A, the KLCI continued its correction on Thursday, ended 6.71 points lower to 1350.72 points. At the moment, the KLCI is staying below the 14, 21, 31 EMA. If the KLCI should continue staying below the 14, 21, 31 EMA, the EMA would serve as the dynamic resistance to the KLCI and the outlook would turns to bearish biased. Nevertheless, the next support for the KLCI is seen at the 1332 level or the WinChart Automatic Fibonacci Retracement at the 1320 level.

Total market volume declined another 16.7% on Thursday, with the volume continue staying below the 40-day VMA level. This shows that most investors are still away from the market as the positive sentiment can not be sustained. Nevertheless, as long as the volume is below the 40-day VMA level, the KLCI is less likely to regain its strength. (Study B)

As circled at C, the Stochastic %D line fell below the 30% level marginally on Thursday. If the %D line should fall below the 30% level successfully, it would confirm the %K line signal and the market movement for the short term would turn to bearish biased. (Study C)

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