As indicated by A, the KLCI continued its downtrend, and even breaks below the 1157 WinChart Automatic Fibonacci Retracement support line. Therefore, the next support for the KLCI is now at 1142 WinChart Automatic Fibonacci Retracement line. As for the resistance, it is still at the 1200 psychological resistance level. Meanwhile, as shown on the chart above, the T2 line (which is the lower channel line) is currently a dynamic support for the KLCI, and the T1 line (downtrend dynamic resistance) remains intact.

As indicated by B, although the KLCI ended lower, volume, on the other hand, rose 42.6%, suggested some interest of bargain hunting. However, the increase of volume on Wednesday is still too early to judge whether the KLCI could regain its strength. If volume should continue increase and above the 40-day VMA level, the KLCI would have a better chance; if not, the increase of volume on Wednesday would eventually added more selling pressure to the market once the market has lost its continuity of inflow of fresh capital.

As circled at C, the MACD line is still below the zero level, suggesting that the KLCI mid to longer term movement is still weak. Unless the MACD line could break above the zero level successfully, the weakness of the KLCI is expected to continue.

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