As shown on the chart above, the KLCI rebounded a total of 9.99 points to 1364.37 points. As indicated by A, the KLCI is now situated in the congestion zone of the 14, 21, 31 EMA. At the moment, the KLCI is still at a consolidation stage with the 1332 points as the support. The KLCI must return to above the 14, 21, 31 EMA successfully with increasing volume in order to resume its bullish movement. The next important resistance level is at 1391.57 level.

Total market volume on Monday declined another 7.2%, and as indicated by B, the total market volume remains below the 40-day VMA level, suggesting that the overall market participation is still relatively insufficient. Therefore, the KLCI is less likely to regain its strength. (Study B)

As circled at C, the Stochastic %K line breaks above the 30% level, leaving the short term bearish region. If the %D line should break above the 30% level, it shall confirm the %K signal, and the market movement for the short term would turn from bearish biased to neutral. (Study C)

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