As indicated by A, the FBM KLCI tested the 14, 21, 31 EMA on Thursday, and precisely resisted by the 14, 21, 3 EMA, which is serving as the dynamic resistance for the KLCI, and the KLCI loss 0.07 of a point.

Meanwhile, the Bollinger Bands did not expand, suggesting that the KLCI is still in a consolidating stage. Nonetheless, resistance for the KLCI remains at 1272 WinChart Automatic Fibonacci Retracement while the support is at 1250 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume increased 9.9%, but remains further below the 40-day VMA level. This shows that the market is still relatively very quiet, thus the buying interests is still low. Therefore, the KLCI is less likely to pickup any strength.

As circled at C, the Stochastic remains above 70% level, in the short term bullish territory. However, due to the resistance at the 14, 21, 31 EMA, coupled with the Bollinger Bands not expanding, the significance of the Stochastic is reduced.

In conclusion, the KLCI has gained 34 points even since its rebound from the 1224 level. With the KLCI currently resisted by the dynamic resistance, of the 14, 21, 31 EMA, the KLCI is expected to pullback slightly. Nevertheless, if the KLCI should start falling, and breaks below the 1250 level or the Bollinger Middle Band, the immediate outlook would turn bearish.

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