As shown on the chart, the KLCI ended 3.99 points lower on Friday to close at 1159.10 points. The KLCI was trading at a narrow range on Friday, and therefore, form a very small candlestick, suggesting that the direction is temporary unclear. Support for the KLCI remains at 1140 WinChart Automatic Fibonacci Retracement and the resistance is at 1172 WinChart Automatic Fibonacci Retracement.

As indicated by A, T1 trend line and the Bollinger Middle Band falls on the same level, thus suggesting a firmer support for the KLCI. Generally, it is rather normal to have a pull-back should take place after a break out from the downtrend. Also, if the KLCI should be supported by the T1 after the pullback, it would confirm the breakout of the downtrend, thus usually a good signal suggesting a stronger movement for the KLCI.

As indicated by B, total market volume increased marginally (1.4%), while staying at the 40-day VMA level. This shows that the market participation is still considered as healthy, which is still a positive sign for the KLCI.

As circled at C, the MACD histogram is still staying at the position region, thus a positive signal for the short term movement. However, if the MACD should start falling and form a rounding top, it would be a signal suggesting a weakening of the MACD signal, thus a technical correction signal.

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